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Hongli Group Inc. Receives Nasdaq Notice Regarding Minimum Bid Price Deficiency

(Very High)
(Negative)
Tags

Hongli Group (Nasdaq:HLP) received a Nasdaq notice on July 2, 2026 for not meeting the $1.00 minimum bid price over 30 consecutive business days ending July 1, 2026.

The stock remains listed and has until December 29, 2026 to regain compliance, potentially via market recovery or a reverse stock split.

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Positive

  • Class A ordinary shares remain listed on Nasdaq Capital Market during the initial 180-day cure period
  • Company has until December 29, 2026 to regain $1.00 minimum bid compliance
  • Potential additional 180-day compliance period available if other Nasdaq initial listing standards are met

Negative

  • Company is not in compliance with Nasdaq $1.00 minimum bid price requirement
  • HLP faces potential Nasdaq delisting if compliance is not regained within allowed periods
  • Regaining compliance may require a reverse stock split, which must occur at least 10 business days before December 29, 2026
  • Company cautions there is no assurance it will regain or maintain Nasdaq listing compliance

News Market Reaction – HLP

+17.48%
24 alerts
+17.48% Session close to close
+26.2% Peak Tracked
-2.6% Trough Tracked
$69.88M Market Cap
0.2x Rel. Volume

In the Jul 10 session, HLP gained 17.48%, reflecting a significant positive market reaction. Argus tracked a peak move of +26.2% during that session. Argus tracked a trough of -2.6% from its starting point during tracking. Our momentum scanner triggered 24 alerts that day, indicating elevated trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock surged +17.5% in the session following this news. A strong upside move after this notice w...
Analysis

The stock surged +17.5% in the session following this news. A strong upside move after this notice would echo prior resolution of a Nasdaq bid-price issue, when shares traded at or above $1.00 for 12 days. History shows rebounds can occur, but expanded share authorization and governance shifts remain key risks.

Key Figures

Minimum bid price requirement: $1.00 per Class A Ordinary Share Non-compliance window: 30 consecutive business days Initial compliance period: 180 calendar days +4 more
7 metrics
Minimum bid price requirement $1.00 per Class A Ordinary Share Nasdaq Listing Rule 5550(a)(2) threshold for continued listing
Non-compliance window 30 consecutive business days Closing bid below $1.00 from May 19, 2026 to July 1, 2026
Initial compliance period 180 calendar days Time from July 2, 2026 Notice to December 29, 2026 to regain compliance
Compliance deadline December 29, 2026 End of initial 180-day period to meet minimum bid price
Required trading period 10 consecutive business days Minimum span with bid at or above $1.00 to cure deficiency
Reverse split timing buffer 10 business days Latest a reverse stock split can be completed before December 29, 2026
Potential additional compliance period 180 calendar days Second period Nasdaq may grant if other listing standards are met

Historical Context

5 past events · Latest: Jul 07 (Positive)
Pattern 5 events
Date Event Sentiment 24h Move Catalyst
Jul 07 collaboration update Positive +6.6% Update on proposed strategic collaboration with Sidus Energy Storage and MOU scope.
Jun 15 strategic MOU Positive +6.2% Signing of non-binding MOU with Sidus Energy Storage for advanced battery manufacturing.
Jun 03 strategy shift Neutral -5.3% Business strategy update focusing on solid-state lithium battery technologies and energy storage.
May 28 advisor appointment Positive +4.7% Engagement of battery technology expert as independent technical advisor for energy initiatives.
May 19 division plan Neutral -5.0% Plan to establish New Energy Solid-State Battery Division for advanced materials and storage.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent Hongli headlines on strategy shifts and collaborations have more often produced single-day gains than losses, but reactions have been mixed.

Key Terms

minimum bid price, reverse stock split, market value of publicly held shares, nasdaq capital market
4 terms
minimum bid price regulatory
"not in compliance with the requirement to maintain a minimum bid price of $1.00 per Class A"
The minimum bid price is the lowest share price that a market, regulator, or specific offering will accept for a trade, listing, or auction—think of it as a reserve or floor that a stock must meet to qualify for certain actions. It matters to investors because falling below that floor can limit trading options, trigger compliance measures or delisting risks, and affect liquidity and the perceived value of a holding, much like a reserve price in an auction sets the baseline for a sale.
reverse stock split financial
"If the Company chooses to implement a reverse stock split, it must complete the split"
A reverse stock split reduces a company's number of outstanding shares while raising the price per share proportionally, so the total value of each investor's holding is unchanged; a 1-for-10 split turns 100 shares worth $1 each into 10 shares worth $10 each. Companies often do this to regain compliance with an exchange's minimum price rule or to attract investors who avoid very low-priced stocks.
market value of publicly held shares regulatory
"required to meet the continued listing requirement for market value of publicly held shares"
The market value of publicly held shares is the total dollar worth of a company’s shares that are available to outside investors, calculated by multiplying the current market price by the number of shares held by the public (the “float”). It matters because it tells investors how much of the company is actually tradable and how the market is pricing that tradable portion—like a price tag on the items on a store shelf, it affects liquidity, volatility and how easy it is to buy or sell a meaningful stake.
nasdaq capital market regulatory
"for continued listing on The Nasdaq Capital Market"
The Nasdaq Capital Market is a platform where smaller, emerging companies can list their shares for trading by investors. It provides these companies with access to funding and visibility, helping them grow, much like a local marketplace where new vendors can introduce their products to potential customers. For investors, it offers opportunities to discover early-stage companies with growth potential.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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WEIFANG, China, July 9, 2026 /PRNewswire/ -- Hongli Group Inc. (the "Company") (Nasdaq: HLP), a cold roll formed steel profile manufacturer, today announced that on July 2, 2026, it received a deficiency letter (the "Notice") from the Nasdaq Listing Qualifications Department (the "Staff") of The Nasdaq Stock Market LLC ("Nasdaq"). The Notice informed the Company that, based upon the closing bid price of the Company's Class A ordinary shares ("Class A Ordinary Shares") over the 30 consecutive business day period between May 19, 2026 and July 1, 2026, the Company is not in compliance with the requirement to maintain a minimum bid price of $1.00 per Class A Ordinary Share for continued listing on The Nasdaq Capital Market, as set forth in Nasdaq Listing Rule 5550(a)(2) (the "Minimum Bid Price Requirement").

The Notice has no immediate effect on the continued listing status of the Class A Ordinary Shares on The Nasdaq Capital Market. The Company has been provided a compliance period of 180 calendar days from the date of the Notice, or until December 29, 2026, to regain compliance pursuant to Nasdaq Listing Rule 5810(c)(3)(A). If at any time before December 29, 2026, the closing bid price of the Class A Ordinary Shares reaches or exceeds $1.00 per share for a minimum of 10 consecutive business days, the Staff will provide written notification that the Company has achieved compliance with the Minimum Bid Price Requirement, and the matter would be resolved. If the Company chooses to implement a reverse stock split, it must complete the split no later than ten business days prior to December 29, 2026, in order to regain compliance.

If the Company does not regain compliance with the Minimum Bid Price Requirement during the initial 180 calendar day period, the Company may be eligible for additional time for compliance. 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. If the Company meets these requirements, Nasdaq will inform the Company that is has been granted an additional 180 calendar days. However, if it appears to Staff that the Company will not be able to cure the deficiency, or if the Company is otherwise not eligible, Nasdaq will provide notice that its securities will be subject to delisting.

The Company intends to actively monitor the closing bid price of the Class A Ordinary Shares and will evaluate available options to regain compliance with the Minimum Bid Price Requirement. However, there can be no assurance that the Company will regain compliance during the initial 180-day compliance period, secure a second compliance period or maintain compliance with the other Nasdaq Listing Rules.

About Hongli Group Inc.

Hongli Group Inc. is a Cayman Islands holding company, and through a series of contractual arrangements, consolidates the financial results of Shandong Hongli Special Section Tube Co., Ltd. and its subsidiaries (collectively, "Hongli Operating Group"). Hongli Operating Group is a cold roll formed steel profile manufacturer with operating subsidiaries in China. Hongli Operating Group designs, customizes and manufactures cold roll formed steel profiles for machinery and equipment in a variety of sectors, including but not limited to mining and excavation, construction, agriculture and transportation. The Hongli Operating Group, with over 25 years of operating history, has developed customers in more than 30 major cities in China as well as a global network including South Korea, Japan, and the United States. Hongli Operating Group currently has 11 cold roll forming production lines and produces a variety of distinct profile products in a broad range of materials, sizes and shapes.

Forward-Looking Statements

Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may," "will," "would," "intend," "should," "believe," "expect," "anticipate," "project," "estimate," "continue" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks, including, but not limited to, the following: the Company's ability to achieve its goals and strategies, the Company's future business development and plans for future business development, including its financial conditions and results of operations, product and service demand and acceptance, reputation and brand, the impact of competition and pricing, changes in technology, government regulations, import and export restrictions, fluctuations in general economic and business conditions, the Company's ability to comply with Nasdaq continued listing standards and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the U.S. Securities and Exchange Commission ("SEC"). For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

For investor and media inquiries, please contact:

Hongli Group Inc.

Mr. Jie Liu
Email: zjf@hongli-profile.com
Tel: +86 0536-2180886

 

Cision View original content:https://www.prnewswire.com/news-releases/hongli-group-inc-receives-nasdaq-notice-regarding-minimum-bid-price-deficiency-302820779.html

SOURCE Hongli Group Inc.

FAQ

What Nasdaq notice did Hongli Group (HLP) receive on July 2, 2026?

Hongli Group received a Nasdaq notice that its Class A shares no longer meet the $1.00 minimum bid requirement. According to the company, this follows 30 consecutive business days with a closing bid below $1.00 between May 19 and July 1, 2026.

Is Hongli Group (HLP) being delisted from Nasdaq after the July 2026 bid price notice?

Hongli Group is not being immediately delisted; its shares remain on Nasdaq Capital Market. According to the company, Nasdaq has granted a 180-day compliance period, ending December 29, 2026, to restore the bid price to at least $1.00.

How long does Hongli Group (HLP) have to regain Nasdaq minimum bid price compliance?

Hongli Group has an initial 180-day period, until December 29, 2026, to regain $1.00 compliance. According to the company, it may qualify for an additional 180 days if it meets other initial listing standards and plans to cure the deficiency.

What must Hongli Group (HLP) do to cure its Nasdaq minimum bid price deficiency?

Hongli Group must achieve a closing bid price of at least $1.00 for 10 consecutive business days. According to the company, it is monitoring its share price and may consider options such as a reverse stock split to regain compliance.

Will Hongli Group (HLP) use a reverse stock split to stay on Nasdaq?

A reverse stock split is one option the company is evaluating to regain compliance. According to Hongli Group, any reverse split must be completed at least 10 business days before December 29, 2026, to count toward curing the deficiency.

What happens if Hongli Group (HLP) cannot meet Nasdaq rules by December 29, 2026?

If Hongli Group does not regain compliance by December 29, 2026, it may seek an extra 180 days. According to the company, failure to qualify or cure the deficiency could result in a Nasdaq delisting notice for its securities.