WANG & LEE GROUP, Inc. Bid Price Deficiency

Rhea-AI Summary

WANG & LEE GROUP (NASDAQ: WLGS), a Hong Kong-based construction contractor, has received a bid price deficiency notification from Nasdaq on May 6, 2025. The company's stock price has fallen below $1.00 per share for 30 consecutive business days, violating Nasdaq Capital Market's minimum bid price requirement.

WLGS has been granted a 180-day compliance period until November 3, 2025 to regain compliance by maintaining a closing bid price of at least $1.00 for a minimum of ten consecutive business days. If unsuccessful, the company may be eligible for an additional 180-day period, provided it meets other listing requirements. The company is considering various actions, including a potential reverse stock split, which must be completed ten business days before the deadline if chosen.

Positive

• Company has 180 days until November 3, 2025 to regain compliance
• Possibility of additional 180-day extension if other listing requirements are met
• Multiple options available to regain compliance, including reverse stock split

Negative

• Stock price has fallen below $1.00 for 30 consecutive business days
• Risk of delisting from Nasdaq Capital Market if compliance is not achieved
• Potential need for reverse stock split, which could affect market perception

Insights

Financial Analyst

Nasdaq delisting notice creates regulatory risk; WLGS must raise share price or face potential removal from exchange.

The Nasdaq bid price deficiency notice represents a significant regulatory challenge for WANG & LEE GROUP. Having traded below $1.00 for 30 consecutive business days, the company now faces potential delisting if unable to resolve this situation. WLGS has until November 3, 2025, to get their share price above $1.00 for at least 10 consecutive trading days.

This notice triggers several potential consequences:

• Compliance options: The company could attempt to boost investor confidence through operational improvements or implement a reverse stock split (which must occur by October 20, 2025, if chosen)
• Extended timeline possibility: If unable to comply initially, WLGS may receive an additional 180 days, but only if meeting all other Nasdaq Capital Market listing requirements
• Delisting risk: Failure to regain compliance could force trading on less prestigious over-the-counter markets, potentially reducing liquidity, institutional ownership, and overall market visibility

The lack of a specified plan in the press release creates uncertainty about management's approach. While reverse splits technically maintain equity value by consolidating shares, they're often viewed negatively as they don't address underlying market sentiment issues.

This notice signals that market participants currently assign WLGS a lower valuation than required for major exchange listing. The coming months will be critical as management works to maintain their Nasdaq listing status.

HONG KONG, May 07, 2025 (GLOBE NEWSWIRE) -- WANG & LEE GROUP, Inc. (NASDAQ: WLGS) (“W&L”, or the “Company”), Hong Kong-based construction prime and subcontractor engaging in the installation of Electrical & Mechanical Systems, today announced that it received written notification on May 6, 2025, from The Nasdaq Stock Market LLC that it no longer complies with the minimum bid price requirement for continued listing on the Nasdaq Capital Market pursuant to the Nasdaq Listing Rule 5550(a)(2).

The closing bid price for the Company's ordinary shares had fallen below $1.00 per share for 30 consecutive business days and accordingly, the Company no longer complies with the minimum bid price requirement for continued listing on the Nasdaq Capital Market pursuant to the Nasdaq Listing Rule 5550(a)(2). However the Nasdaq Listing Rules also provide the Company a compliance period of 180 calendar days (i.e. by November 3, 2025) in which to regain compliance. If the Company chooses to implement a reverse stock split, it must complete the split no later than ten business days prior to the November 3, 2025.

If at any time during this 180-days period, the closing bid price of the Company's ordinary shares is at least $1.00 for a minimum of ten consecutive business days, the Company will be provided with written confirmation of compliance and the matter will be closed.

In the event the Company does not regain compliance, it may be eligible for additional time. 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, the Nasdaq will inform that Company that it has been granted an additional 180 calendar days. However if it appears to the Staff that the Company will not be able to cure the deficiency, or if the Company is otherwise not eligible, its ordinary shares will be subject to delisting.

The Company is considering actions that it may take in response to this notification in order to regain compliance with the continued listing requirements, but no decisions about a response have been made at this time.

About WANG & LEE GROUP, Inc.

WANG & LEE GROUP, Inc. is a Hong Kong-based construction prime and subcontractor engaging in the installation of Electrical & Mechanical Systems, which includes low voltage (220v/phase 1 or 380v/phase 3) electrical system, mechanical ventilation and air-conditioning system, fire service system, water supply and sewage disposal system installation and fitting out for the public and private sectors. It is also able to provide design and contracting services to all trades in the construction industry. Their clients range from small startups to large companies.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding the Company's ability to grow its business and other statements that are not historical facts, including statements which may be accompanied by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or similar words. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including without limitation, the Company's ability to achieve profitable operations, customer acceptance of new products, and future measures taken by authorities in the countries wherein the Company has supply chain partners, the demand for the Company's products and the Company's customers' economic condition, the impact of competitive products and pricing, successfully managing and, general economic conditions and other risk factors detailed in the Company's filings with the United States Securities and Exchange Commission. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake any responsibility to update the forward-looking statements in this release, except in accordance with applicable law.

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WANG & LEE GROUP, Inc.: https://www.wangnleegroup.com/

Email: ir@wangnlee.com.hk

FAQ

Why did WLGS receive a Nasdaq deficiency notice?

WLGS received a deficiency notice because its stock price fell below $1.00 per share for 30 consecutive business days, violating Nasdaq Capital Market's minimum bid price requirement.

What is the deadline for WLGS to regain Nasdaq compliance?

WLGS has until November 3, 2025 (180 days) to regain compliance by maintaining a closing bid price of at least $1.00 for a minimum of ten consecutive business days.

What options does WLGS have to maintain Nasdaq listing?

WLGS can implement a reverse stock split (must be done 10 days before deadline), achieve natural price recovery above $1.00, or potentially qualify for an additional 180-day compliance period.

What happens if WLGS fails to meet Nasdaq's requirements?

If WLGS fails to meet requirements and is not eligible for extension, its ordinary shares will be subject to delisting from the Nasdaq Capital Market.