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Equity shortfall puts Happy City (Nasdaq: HCHL) under Nasdaq listing pressure

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Form Type
6-K

Rhea-AI Filing Summary

Happy City Holdings Limited has received a Nasdaq notice that it no longer meets the required $2,500,000 minimum stockholders’ equity for continued listing on The Nasdaq Capital Market. Based on its Form 20-F, the company reported stockholders’ equity of $2,206,497 as of August 31, 2025, and it also does not meet alternative market value or net income standards.

The company’s Class A ordinary shares continue trading under the symbol HCHL, and business operations are unchanged for now. Happy City has 45 days, until March 9, 2026, to submit a compliance plan, after which Nasdaq may grant up to 180 days from the notification date to regain compliance. The company is evaluating measures to restore equity levels but notes there is no assurance its plan will be accepted or that it will successfully regain and sustain compliance.

Positive

  • None.

Negative

  • Nasdaq equity listing deficiency: Happy City reported stockholders’ equity of $2,206,497 versus Nasdaq’s $2,500,000 minimum and does not meet alternative standards, creating a material risk to its continued Nasdaq Capital Market listing if compliance is not restored.

Insights

Nasdaq equity deficiency notice introduces real listing risk for Happy City.

Happy City Holdings Limited has fallen below Nasdaq’s $2,500,000 stockholders’ equity requirement, reporting $2,206,497 as of August 31, 2025. It also fails the alternative tests based on market value of listed securities and net income from continuing operations, triggering a formal deficiency notice.

The shares remain listed and trading under HCHL, and operations are currently unaffected. However, continued listing now depends on submitting an acceptable remediation plan by March 9, 2026 and then demonstrating compliance within a period that may extend up to 180 days from the notification date.

The company is evaluating measures to bolster equity and intends to submit a plan, but explicitly warns there is no assurance of Nasdaq acceptance or successful long-term compliance. Subsequent disclosures on the submitted plan and any Nasdaq response will clarify the durability of its U.S. listing status.

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of January 2026

 

Commission File Number: 001- 42712

 

HAPPY CITY HOLDINGS LIMITED 

 

30 Cecil Street
#19-08 Prudential Tower
Singapore

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

 

Form 20-F Form 40-F

 

 

 

 

 

 

INFORMATION CONTAINED IN THIS FORM 6-K REPORT

 

On January 23, 2026, Happy City Holdings Limited (the “Company”) received a notice from the staff of the Nasdaq Listing Qualifications department (the “Staff”) of The Nasdaq Stock Market LLC (“Nasdaq”) stating that it is not in compliance with the minimum of $2,500,000 in stockholders’ equity for continued listing of the Company’s class A ordinary shares of no par value each (the “Class A Ordinary Shares”) on The Nasdaq Capital Market, as set forth in Nasdaq Listing Rule 5550(b)(1) (the “Minimum Stockholders’ Equity Rule”) (the “Notification Letter”).

 

The Minimum Stockholders’ Equity Rule requires companies listed on The Nasdaq Capital Market to maintain a minimum of $2,500,000 in stockholders’ equity for continued listing. However, based on the Company’s Form 20-F filed on January 14, 2026, in which the Company filed its audited consolidated financial statements for the fiscal year ended August 31, 2025, the Company reported stockholders’ equity of $2,206,497 as of August 31, 2025, and the Company does not meet the alternatives of market value of listed securities or net income from continuing operations as of January 23, 2026, and is thus non-compliant with the Minimum Stockholders’ Equity Rule.

 

The Company’s Class A Ordinary Shares continue to trade on The Nasdaq Capital Market under the symbol “HCHL,” and the Company’s business operations are not affected by receipt of the Notification Letter. The Notification Letter has no immediate effect on the Company’s listing status. In accordance with the Nasdaq Listing Rules, the Company has 45 calendar days, or until March 9, 2026, to submit a plan to regain and sustain compliance. If the plan is accepted, Nasdaq may grant an extension of up to 180 calendar days from receipt of the Notification Letter to evidence compliance.

 

The Company is evaluating a range of measures to regain and sustain compliance, consistent with the Nasdaq Listing Rules and in the ordinary course of its corporate and capital planning activities, and intends to take all measures available to the Company to maintain its continued listing on The Nasdaq Capital Market. The Company intends to submit the compliance plan by the March 9, 2026, due date. There can be no assurance that the Company’s plan will be accepted, or that the Company will be able to regain and sustain compliance with the Minimum Stockholders’ Equity Rule and all other continued listing requirements.

 

On January 27, 2026, the Company issued a press release entitled “Happy City Holdings Limited Receives Nasdaq Notification Regarding Minimum Stockholders’ Equity Deficiency.” A copy of the press release is filed as Exhibit 99.1 to this Current Report on Form 6-K and is incorporated herein by reference.

 

1

 

 

EXHIBIT INDEX

 

Exhibit No.   Description
99.1   Press Release, dated January 27, 2026.

 

2

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  Happy City Holdings Limited
     
Date: January 27, 2026 By: /s/ Suk Yee, Kwan
  Name:  Suk Yee, Kwan
  Title: Chief Executive Officer

 

3

 

Exhibit 99.1

 

Happy City Holdings Limited Receives Nasdaq Notification Regarding Minimum Stockholders’ Equity Deficiency

 

Hong Kong, Jan. 27, 2026 (GLOBE NEWSWIRE) -- Happy City Holdings Limited (Nasdaq: HCHL) (the “Company” or “Happy City”) today announced that the Company received a notice from the staff of the Nasdaq Listing Qualifications department (the “Staff”) of The Nasdaq Stock Market LLC (“Nasdaq”), dated January 23, 2026 (the “Notification Letter”), notifying the Company that the Company is not in compliance with the minimum of $2,500,000 in stockholders’ equity for continued listing of the Company’s class A ordinary shares of no par value (the “Class A Ordinary Shares”) on The Nasdaq Capital Market, as set forth in Nasdaq Listing Rule 5550(b)(1) (the “Minimum Stockholders’ Equity Rule”).

 

The Minimum Stockholders’ Equity Rule requires companies listed on The Nasdaq Capital Market to maintain a minimum of $2,500,000 in stockholders’ equity for continued listing. However, based on the Company’s Form 20-F filed on January 14, 2026, where the Company filed its audited consolidated financial statements for the year ended August 31, 2025, the Company reported stockholders’ equity of $2,206,497 as of August 31, 2025, and the Company does not meet the alternatives of market value of listed securities or net income from continuing operations as of January 23, 2026, and is thus non-compliant with the Minimum Stockholders’ Equity Rule.

 

The Company’s Class A Ordinary Shares continue to trade on The Nasdaq Capital Market under the symbol “HCHL,” and the Company’s business operations are not affected by receipt of the Notification Letter. The Notification Letter has no immediate effect on the Company’s listing status. In accordance with the Nasdaq Listing Rules, the Company has 45 calendar days, or until March 9, 2026, to submit a plan to regain compliance. If the plan is accepted, Nasdaq may grant an extension of up to 180 calendar days from receipt of the Notification Letter to evidence compliance.

 

The Company is evaluating a range of measures to regain and sustain compliance, consistent with the Nasdaq Listing Rules and in the ordinary course of its corporate and capital planning activities, and intends to maintain its continued listing on The Nasdaq Capital Market. The Company intends to submit the compliance plan by or before March 9, 2026, the due date. There can be no assurance that the Company’s plan will be accepted, or that the Company will be able to regain and sustain compliance with the Minimum Stockholders’ Equity Rule and all other applicable continued listing requirements.

 

About Happy City Holdings Limited 

 

Headquartered in Hong Kong, we are a restaurant operator that operates three all-you-can-eat hotpot restaurants in Hong Kong serving mixed style, Shabu Shabu-style and Thai-style specialty hotpot. Through our restaurants that are located in various prime locations in Hong Kong, our unique brand image, and our strong commitment to food quality, we offer an immersive dining experience to our customers.

 

Forward-Looking Statements

 

This press release contains forward-looking statements involving risks and uncertainties, including statements relating to the Company’s future business plans, growth expectations, expansion strategy, and the anticipated impact of the divestment. Actual results may differ materially due to market conditions, operational execution, regulatory developments, and other factors. The Company undertakes no obligation to revise forward-looking statements except as required by law.

 

Contacts

 

Happy City Holdings Limited
Investor Relations
Email: info@happycitys.com

 

FAQ

Why did Happy City Holdings (HCHL) receive a Nasdaq deficiency notice?

Happy City received the notice because its stockholders’ equity fell below Nasdaq’s required $2,500,000 minimum. The company reported equity of $2,206,497 as of August 31, 2025 and also failed alternative market value and net income standards.

Is Happy City Holdings Limited at risk of being delisted from Nasdaq?

The Nasdaq notice signals a risk to Happy City’s listing if compliance is not restored. The company must submit a remediation plan by March 9, 2026, and then demonstrate compliance within a period that may extend up to 180 days from the notice date.

Are Happy City’s operations or HCHL share trading immediately affected by the Nasdaq notice?

There is no immediate impact on operations or trading. Happy City states its business activities are unaffected, and its Class A ordinary shares continue to trade on The Nasdaq Capital Market under the symbol HCHL while it works on a compliance plan.

What steps can Happy City Holdings take to regain Nasdaq equity compliance?

The company is evaluating a range of measures to increase and sustain stockholders’ equity, consistent with Nasdaq rules. It plans to submit a formal compliance plan by March 9, 2026, though there is no assurance the plan will be accepted or succeed.

What specific equity figures are involved in Happy City’s Nasdaq deficiency?

Nasdaq requires minimum stockholders’ equity of $2,500,000 for continued listing on The Nasdaq Capital Market. Happy City’s audited financials reported stockholders’ equity of $2,206,497 as of August 31, 2025, which triggered the deficiency notice.

How long does Happy City have to fix its Nasdaq equity shortfall?

Happy City has 45 calendar days from the January 23, 2026 notification, until March 9, 2026, to submit a compliance plan. If accepted, Nasdaq may allow up to 180 days from the notification date to show the required stockholders’ equity level.
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