Highway Holdings Receives Additional 180-Day Nasdaq Extension to Regain Minimum Bid Price Compliance
Highway Holdings (HIHO) has received a second 180‑day extension from Nasdaq, through March 15, 2027, to regain compliance with the exchange’s minimum US$1.00 bid price requirement.
Rhea-AI Summary
Highway Holdings (HIHO) has received a second 180‑day extension from Nasdaq, through March 15, 2027, to regain compliance with the exchange’s minimum US$1.00 bid price requirement.
The company’s common shares will continue to trade uninterrupted on Nasdaq under the ticker “HIHO” during this period. Nasdaq granted the extension because Highway Holdings meets the market value of publicly held shares requirement and all other applicable initial listing standards for the Nasdaq Capital Market, except for the bid price, and has notified Nasdaq of its intention to cure the deficiency, including potentially via a reverse stock split. Highway Holdings believes it can regain compliance but warns there is no assurance it will do so or maintain compliance with other Nasdaq criteria.
Positive
- Second 180-day Nasdaq extension granted to regain minimum bid compliance through March 15, 2027
- Shares continue trading on Nasdaq under HIHO during the new compliance period
- Meets all other Nasdaq initial listing standards including market value of publicly held shares
Negative
- Remains below US$1.00 bid price and still non-compliant with Nasdaq Listing Rule 5810(c)(3)(A)
- No assurance of regaining or maintaining compliance with Nasdaq listing criteria, as stated by the company
- May need a reverse stock split to cure the bid price deficiency, which can be dilutive in perception
News Explained
The extension provides time rather than restored compliance: Highway Holdings must reach a closing bid price of at least
Details
Market Reaction – HIHO
Following this news, HIHO has gained 2.54%, reflecting a moderate positive market reaction. The stock is currently trading at $0.96.
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Key Figures
- Compliance extension
- 180 calendar days
- Second Nasdaq compliance period through March 15, 2027
- Compliance deadline
- March 15, 2027
- Deadline to regain minimum bid price compliance
- Minimum bid price
- US$1.00 per share
- Required closing bid price
- Required consecutive sessions
- 10 consecutive business days
- Minimum bid price compliance test
Key Terms
minimum bid price requirement regulatory
reverse stock split technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Nasdaq's determination is based on the Company meeting the continued listing requirement for market value of publicly held shares and all other applicable requirements for initial listing on the Nasdaq Capital Market, with the exception of the bid price requirement, and the Company's written notice of its intention to cure the deficiency during the second compliance period and if necessary, by effecting a reverse stock split. While the Company believes it will be able to timely regain compliance with Nasdaq's continued listing requirements, there can be no assurance that the Company will be able to regain compliance or will otherwise be able to maintain compliance with other Nasdaq listing criteria.
To regain compliance with Nasdaq's minimum bid price requirement set forth under Nasdaq Listing Rule 5810(c)(3)(A), the closing bid price of the Company's common shares must be at least
About Highway Holdings
Highway Holdings is an international manufacturer of a wide variety of high-quality parts and products for blue chip equipment manufacturers based primarily in Germany. Highway Holdings' administrative office is located in Hong Kong and its manufacturing facilities are located in Germany, Yangon, Myanmar and Shenzhen, China.
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements which involve risks and uncertainties, including but not limited to our ability to regain compliance with the minimum closing bid price requirement, and the economic, competitive, governmental, political and technological factors affecting the company's revenues, operations, markets, products and prices, and other factors discussed in the company's various filings with the Securities and Exchange Commission, including without limitation, the company's annual reports on Form 20-F.
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SOURCE Highway Holdings Limited
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What does Highway Holdings need to do to regain Nasdaq minimum bid price compliance?
To regain compliance with Nasdaq’s minimum bid price requirement under Listing Rule 5810(c)(3)(A), the closing bid price of Highway Holdings’ common shares must be at least US$1.00 per share or greater for at least ten consecutive business days by March 15, 2027.
Why did Nasdaq grant Highway Holdings an additional 180-day compliance period?
Nasdaq granted the second 180‑day period because Highway Holdings currently meets the market value of publicly held shares requirement and all other applicable requirements for initial listing on the Nasdaq Capital Market, except for the minimum bid price, and the company has provided written notice of its intention to cure the deficiency, including the option of a reverse stock split.
How might Highway Holdings address the bid price deficiency if needed?
The company has indicated that, if necessary during the second compliance period, it may cure the deficiency by effecting a reverse stock split of its common shares.