Huadi International Group Co., Ltd. Announces Receipt of Nasdaq Notification Regarding Minimum Bid Price Deficiency

Rhea-AI Summary

Huadi International Group (NASDAQ: HUDI) reported receiving a Nasdaq Listing Qualifications Staff Determination Letter on July 14, 2026, indicating non-compliance with the $1.00 minimum bid price requirement after 30 consecutive business days below that level. The notification does not immediately affect the listing or trading of HUDI shares.

Huadi has 180 calendar days, until January 11, 2027, to regain compliance, which requires a closing bid of at least $1.00 for 10 consecutive business days. The company may qualify for an additional 180-day period and is considering options, including a potential reverse stock split, while monitoring its share price.

Positive

• No immediate impact on Nasdaq listing or trading status
• Initial 180-day compliance period through January 11, 2027
• Potential additional 180-day extension if other listing standards are met
• Option to use a reverse stock split to help cure deficiency

Negative

• HUDI below $1.00 bid price for 30 consecutive business days
• Currently non-compliant with Nasdaq Listing Rule 5550(a)(2)
• Risk of delisting if compliance not regained within allowed periods
• Reverse stock split, if used, could have shareholder impact

Market reaction after Nasdaq bid-price deficiency notice: HUDI -7.22% in the Jul 17 session

-7.22%

2 alerts

-7.22% Session close to close

-6.8% Trough Tracked

$11.96M Market Cap

0.8x Rel. Volume

In the Jul 17 session, HUDI declined 7.22%, reflecting a notable negative market reaction. Argus tracked a trough of -6.8% from its starting point during tracking. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock moved -7.2% in the session following this news. A sharp decline following the Nasdaq bid-p...

Analysis

The stock moved -7.2% in the session following this news. A sharp decline following the Nasdaq bid-price notice would fit the pre-existing pressure reflected in HUDI’s 6-K, which reported a move from profit to a net loss of about $1.1 million. With short interest categorized as low, extended downside would likely be driven more by fundamentals and listing-risk concerns than a squeeze dynamic.

Key Figures

Minimum bid price: $1.00 per share Deficiency period: 30 consecutive business days Initial compliance period: 180 calendar days +4 more

7 metrics

Minimum bid price $1.00 per share Nasdaq Listing Rule 5550(a)(2) requirement for continued listing

Deficiency period 30 consecutive business days Period with closing bid below $1.00 trigger level

Initial compliance period 180 calendar days Time granted to regain compliance, ending January 11, 2027

Compliance deadline January 11, 2027 End of initial Nasdaq bid-price compliance period

Compliance confirmation window 10 consecutive business days Required period with closing bid at or above $1.00

Additional compliance period 180 calendar days Potential second period if initial deadline is not met

Reverse split timing 10 business days Latest date before compliance-period expiration to complete reverse split

Key Terms

reverse stock split, compliance period

2 terms

reverse stock split financial

"including by effecting a reverse stock split, if necessary."

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.

compliance period regulatory

"If at any time during the Compliance Period, the closing bid price"

A compliance period is a defined stretch of time during which a company must meet specific legal, regulatory, or contractual rules and reporting requirements. Think of it like a scheduled inspection window or a homework deadline: failing to satisfy the rules within that window can trigger fines, restrictions, or extra oversight, so investors watch compliance periods as signals of near-term legal risk, potential costs, and impacts on a company’s operations or cash flow.

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

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Wenzhou, China, July 17, 2026 (GLOBE NEWSWIRE) -- Huadi International Group Co., Ltd. (“HUDI” or the “Company”) (NASDAQ: HUDI), a developer and manufacturer of industrial stainless steel seamless pipes and tubes products in China, confirmed that on July 14, 2026, it received a Nasdaq Listing Qualifications Staff Determination Letter (the “Notice”) stating that the Company is not in compliance with Nasdaq’s minimum bid price requirement. The Notice advised that for a period of 30 consecutive business days, the closing bid price per share for the Company’s ordinary shares was below the $1.00 per share requirement for continued listing under Nasdaq Listing Rule 5550(a)(2). This press release is issued pursuant to Nasdaq Listing Rule 5810(b), which requires prompt disclosure of receipt of a deficiency notification.

The Notice does not immediately impact the listing or trading of the Company’s ordinary shares on Nasdaq. 

Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), the Company has been granted a compliance period of 180 calendar days, or until January 11, 2027, to regain compliance. If at any time during the Compliance Period, the closing bid price per share of the Company’s ordinary shares is at least $1.00 for a minimum of 10 consecutive business days, Nasdaq will provide the Company a written confirmation of compliance and the matter will be closed.

In the event the Company does not regain compliance by January 11, 2027, the Company may be eligible for an additional 180 calendar days’ period to regain 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 minimum bid price requirement, and will need to provide written notice of its intention to cure the deficiency during the second compliance period, including by effecting a reverse stock split, if necessary. If the Company chooses to implement a reverse stock split, it must complete the split no later than 10 business days prior to the expiration of the compliance period.

The Company is actively monitoring the bid price of its ordinary shares and is considering all available options to regain compliance with Nasdaq’s requirements. The Company remains committed to delivering value to its shareholders and maintaining its listing on Nasdaq.

About Huadi International Group Co., Ltd.

Huadi International Group Co., Ltd. is a manufacturer of industrial stainless steel seamless pipes and tubes products with extensive distribution facilities and network for over twenty provinces in China and across international steel pipes industry. It offers a broad range of products exported to twenty countries and regions such as the United States, Singapore, Mexico, Thailand, Australia, Argentina, Taiwan, India, the Philippines, UAE, Canada  and Germany. Its products are widely used in the oil & gas transmission, chemical engineering, food processing, medical devices, aeronautics and astronautics, boiler, irrigation works construction, electricity, automobile, naval architecture, paper mill and mechanical industries. 

Forward-Looking Statement

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. 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”, “intend”, “should”, “believe”, “expect”, “anticipate”, “project”, “estimate” 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 goals and strategies; the Company’s future business development; financial condition and results of operations; product and service demand and acceptance; reputation and brand; the impact of competition and pricing; changes in technology; government regulations; fluctuations in general economic and business conditions in China 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 (the “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 more information, please contact:

The Company: IR Department    Email: IR@huadigroup.com

FAQ

What Nasdaq notification did Huadi International Group (NASDAQ: HUDI) receive on July 14, 2026?

Huadi International Group received a Nasdaq Staff Determination Letter stating HUDI is not compliant with the $1.00 minimum bid price requirement. According to Huadi International Group, this followed 30 consecutive business days with a closing bid below $1.00 per share.

What is the compliance deadline for HUDI to meet Nasdaq’s $1.00 minimum bid price?

HUDI has until January 11, 2027, a 180-day compliance period, to regain compliance. According to Huadi International Group, it must achieve a closing bid of at least $1.00 for 10 consecutive business days within this period.

Can Huadi International Group (HUDI) get more time beyond January 11, 2027 to regain Nasdaq compliance?

HUDI may receive an additional 180-day period to regain compliance if it meets all other initial Nasdaq Capital Market listing standards. According to Huadi International Group, it must also notify Nasdaq of its plan to cure the bid price deficiency.

Does the Nasdaq minimum bid price deficiency notice immediately affect trading of HUDI shares?

The notice does not immediately affect the listing or trading of HUDI ordinary shares on Nasdaq. According to Huadi International Group, its stock continues to trade while it works within the defined compliance periods to restore bid price compliance.

How could a reverse stock split help HUDI regain Nasdaq bid price compliance?

A reverse stock split would consolidate HUDI shares, potentially raising the per-share price above $1.00. According to Huadi International Group, any reverse split must be completed at least 10 business days before the compliance period expires.

What happens if Huadi International Group fails to regain Nasdaq compliance within the allowed periods?

If HUDI does not regain compliance within the 180-day period and any granted extension, Nasdaq could move to delist the shares. According to Huadi International Group, it is monitoring prices and considering options to avoid this outcome.