Highway Holdings Receives Nasdaq Notification Regarding Minimum Bid Price Deficiency

Rhea-AI Summary

Highway Holdings (Nasdaq: HIHO) received a Nasdaq notification dated March 17, 2026, for failing to meet the $1.00 minimum bid price rule after 30 consecutive business days below the threshold. The Company has an initial 180-day compliance period until September 14, 2026 to regain compliance by achieving a $1.00 closing bid for 10 consecutive business days.

If compliance is not regained, the Company may request a second 180-day cure period by meeting market value and other initial listing standards (except bid price) and notifying Nasdaq, potentially via a reverse stock split; failure could lead to delisting and an appeal opportunity.

Positive

• Shares will continue trading on Nasdaq during compliance period
• Initial 180-day window to regain compliance (until Sept 14, 2026)

Negative

• Closing bid price has been below $1.00 for 30 consecutive business days
• Potential need for a reverse stock split if price does not recover
• Risk of delisting if compliance not achieved after allowed cure periods

News Market Reaction – HIHO

-4.97%

1 alert

-4.97% News Effect

+8.1% Peak Tracked

-$202K Valuation Impact

$3.87M Market Cap

0.1x Rel. Volume

On the day this news was published, HIHO declined 4.97%, reflecting a moderate negative market reaction. Argus tracked a peak move of +8.1% during that session. This price movement removed approximately $202K from the company's valuation, bringing the market cap to $3.87M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Consecutive days below $1: 30 business days Minimum bid requirement: $1.00 per share Initial compliance period: 180 calendar days +3 more

6 metrics

Consecutive days below $1 30 business days Period triggering Nasdaq minimum bid deficiency notice

Minimum bid requirement $1.00 per share Nasdaq Listing Rule 5550(a)(2) threshold

Initial compliance period 180 calendar days Time to regain minimum bid compliance until September 14, 2026

Compliance deadline September 14, 2026 End of initial 180-day compliance period

Required bid duration 10 business days Minimum consecutive days at or above $1.00 to regain compliance

Additional grace period 180 calendar days Potential second compliance period if criteria are met

Market Reality Check

Price: $0.7700 Vol: Volume 20,551 is below th...

low vol

$0.7700 Last Close

Volume Volume 20,551 is below the 20-day average of 95,236 (relative volume 0.22). low

Technical Shares at 0.8208 are trading below the 200-day MA of 1.39 and under the $1.00 minimum bid.

Peers on Argus

Peer moves are mixed: SGBX up 2.74%, TRSG up 8.33%, while AP, TPCS, and TG are d...

1 Down

Peer moves are mixed: SGBX up 2.74%, TRSG up 8.33%, while AP, TPCS, and TG are down between about 1–4%. Momentum scanner only flags MTEN down 3.68%, suggesting HIHO’s bid-price issue is stock-specific rather than a broad sector move.

Historical Context

4 past events · Latest: Mar 05 (Positive)

Pattern 4 events

Date	Event	Sentiment	Move	Catalyst
Mar 05	Acquisition closing	Positive	-3.0%	Completion of 51% acquisition of Regent-Feinbau Adermann GmbH.
Mar 02	Earnings update	Negative	-6.5%	Fiscal 2026 Q3 and nine-month results with revenue declines and net loss.
Dec 23	Acquisition plan	Positive	+50.6%	Letter of intent to acquire 51% of Regent-Feinbau Adermann GmbH.
Dec 15	Earnings results	Negative	-10.9%	Fiscal 2026 Q2 results showing lower sales and a net loss.

Pattern Detected

Recent acquisition news has seen one strong positive reaction and one negative, while weaker earnings have consistently coincided with share price declines.

Recent Company History

Over the last several months, Highway Holdings reported weaker fiscal 2026 Q2 and Q3 results, with net sales declines and a swing to net losses, and the stock fell after both releases. In contrast, the planned acquisition of 51% of Regent‑Feinbau Adermann GmbH in Dec 2025 drove a 50.6% gain. Completion of that deal on Feb 28, 2026 drew a negative reaction. Against this backdrop of mixed responses to operational news, the Nasdaq minimum bid price notification reflects sustained share-price pressure near the lower end of the recent range.

Market Pulse Summary

This announcement detailed Nasdaq’s notification that Highway Holdings had failed the $1.00 minimum ...

Analysis

This announcement detailed Nasdaq’s notification that Highway Holdings had failed the $1.00 minimum bid requirement for 30 consecutive business days and described a structured path to regain compliance over an initial 180-day period ending September 14, 2026. In the context of earlier weak earnings and mixed reactions to acquisition news, investors may focus on bid-price evolution, any consideration of a reverse stock split, and progress on operational initiatives already disclosed.

Key Terms

minimum bid price requirement, reverse stock split, listing qualifications department

3 terms

minimum bid price requirement regulatory

"to regain compliance with the Minimum Bid Price Requirement"

A minimum bid price requirement is a rule that a stock must trade above a set price for a specified period to stay listed on an exchange. It matters to investors because falling below that threshold can trigger warnings or removal from the exchange, which can cut liquidity, reduce visibility, and often lead to sharper declines in share value—think of it like a venue’s minimum dress code that, if not met, can bar a performer from the stage.

reverse stock split financial

"by effecting a reverse stock split, if necessary, to Nasdaq"

A reverse stock split is when a company reduces the number of its shares outstanding, making each share more valuable. For example, if you own 100 shares worth $1 each, a 1-for-10 reverse split would turn your 100 shares into 10 shares worth $10 each. Companies often do this to boost their stock price and appear more stable to investors.

listing qualifications department regulatory

"received a written notification from the Listing Qualifications Department of the Nasdaq Stock Market"

A listing qualifications department is the part of a stock exchange that checks whether a company meets the exchange’s rules for being listed and staying listed. Think of it as a gatekeeper or building inspector: it reviews financial statements, disclosure practices and corporate governance, flags problems and can require fixes or remove a company’s shares. Investors care because its decisions affect whether a stock remains tradable and how much trust to place in a company’s reporting.

AI-generated analysis. Not financial advice.

HONG KONG, March 26, 2026 /PRNewswire/ -- Highway Holdings Limited (Nasdaq: HIHO, the "Company" or "Highway Holdings") today announced that on March 17, 2026, Highway Holdings Limited (the "Company") received a written notification (the "Notification Letter") from the Listing Qualifications Department of the Nasdaq Stock Market ("Nasdaq") notifying the Company that, for the preceding 30 consecutive business days, the closing bid price of the Company's common shares (the "Shares"), has been below the minimum $1.00 per share requirement for continued listing on The Nasdaq Capital Market pursuant to Nasdaq Listing Rule 5550(a)(2) (the "Minimum Bid Price Requirement").

The Notification Letter has no immediate effect on the listing or trading of the Shares, which will continue to trade on The Nasdaq Capital Market under the symbol "HIHO".

In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company has been provided an initial compliance period of 180 calendar days, or until September 14, 2026, to regain compliance with the Minimum Bid Price Requirement (the "Compliance Period"). To regain compliance, the closing bid price of the Shares must be at least $1.00 per share for a minimum of 10 consecutive business days during the Compliance Period. If such compliance is demonstrated, Nasdaq will provide the Company with a written confirmation of compliance and the matter will be closed.

In the event the Company does not regain compliance with the minimum bid price requirement by September 14, 2026, the Company may be eligible for an additional 180 calendar day grace period. To qualify, the Company will be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for The Nasdaq Capital Market, with the exception of the bid price requirement, and will need to provide written notice of its intention to cure the deficiency during the second compliance period, by effecting a reverse stock split, if necessary, to Nasdaq. If the Company does not qualify for the second compliance period or fails to regain compliance during the second 180-day period, then Nasdaq will notify the Company of its determination to delist the Company's ordinary shares, at which point the Company will have an opportunity to appeal the delisting determination to a Hearings Panel.

The Company intends to monitor the closing bid price of the ordinary shares and may, if appropriate, consider implementing available options to regain compliance with the minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2).

About Highway Holdings Limited

Highway Holdings is an international manufacturer of a wide variety of quality parts and products for blue chip equipment manufacturers based primarily in Germany. Highway Holdings' administrative offices are located in Hong Kong and its manufacturing facilities are located in Yangon, Myanmar, and Shenzhen, China. For more information visit website www.highwayholdings.com.

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 the Company's ability to regain compliance with Nasdaq's rules for continued listing, market conditions, 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.

View original content:https://www.prnewswire.com/news-releases/highway-holdings-receives-nasdaq-notification-regarding-minimum-bid-price-deficiency-302725795.html

SOURCE Highway Holdings Limited

FAQ

Why did Nasdaq notify Highway Holdings (HIHO) about a minimum bid price deficiency on March 17, 2026?

Nasdaq notified the company because the closing bid price was under $1.00 for 30 consecutive business days. According to the company, that triggers Nasdaq Listing Rule 5550(a)(2) and starts the initial compliance process under Nasdaq rules.

How long does Highway Holdings (HIHO) have to regain compliance with Nasdaq's $1.00 rule?

Highway Holdings has an initial 180-calendar-day compliance period, until September 14, 2026. According to the company, it must achieve a $1.00 closing bid for 10 consecutive business days within that window to regain compliance.

What happens if Highway Holdings (HIHO) fails to regain the $1.00 bid price by September 14, 2026?

If not compliant by that date, the company may seek a second 180-day cure period by meeting market value and other listing standards. According to the company, failure after cure periods could lead to Nasdaq delisting and an appeal process.

Can Highway Holdings (HIHO) avoid delisting without a reverse stock split?

Possibly, if the market price rises to meet the $1.00 closing bid requirement for 10 consecutive business days. According to the company, management will monitor the price and may consider a reverse stock split if appropriate.

Will Highway Holdings (HIHO) shares stop trading during the Nasdaq compliance process?

No, the Notification Letter does not affect listing or trading; shares will continue to trade under HIHO on Nasdaq. According to the company, trading remains normal while the compliance process proceeds.

What specific Nasdaq standard triggered the notice to Highway Holdings (HIHO)?

The notice was issued under Nasdaq Listing Rule 5550(a)(2) for the minimum bid price requirement. According to the company, the rule requires a $1.00 minimum closing bid to maintain listing on The Nasdaq Capital Market.