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Nasdaq gives The GrowHub Limited (Nasdaq: TGHL) more time on merger plan

(Neutral)
(Neutral)
Form Type
6-K

Rhea-AI Filing Summary

The GrowHub Limited describes ongoing Nasdaq listing deficiencies and a conditional extension. Nasdaq previously notified the company that the minimum bid price of its Class A ordinary shares had stayed below $1.00 for 30 consecutive business days, and that stockholders’ equity of $2,299,129 as of December 31, 2025 was below the $2,500,000 requirement under Nasdaq Listing Rule 5550(b)(1). After a June 5, 2026 staff determination to delist, a July 16 hearing led to a July 29 Decision Letter granting an exception, allowing continued listing if the company demonstrates compliance with Nasdaq initial listing standards by December 2, 2026.

The company is pursuing a strategic merger to support this plan. Under a July 14, 2026 Merger Agreement with EnChem Co., Ltd. and EnChem America, Inc., a newly formed Merger Sub will merge into EnChem America, which will become a wholly owned subsidiary. At closing, all EnChem America equity will be exchanged for 142,848,176 Company Class A ordinary shares, or a larger amount equal to 85% of fully diluted shares, resulting in a change in control that requires meeting Nasdaq’s initial listing standards. Completion of the merger is subject to closing conditions, and there is no assurance the merger or Nasdaq compliance will be achieved within the exception period.

Positive

  • Nasdaq Panel grants an exception through December 2, 2026, permitting The GrowHub Limited to continue trading while it executes its compliance plan, including efforts to complete the EnChem merger and meet Nasdaq initial listing standards.

Negative

  • Risk of Nasdaq delisting remains elevated because TGHL has failed both the $1.00 minimum bid price and $2,500,000 equity requirements and must fully meet Nasdaq initial listing standards by December 2, 2026 or face removal from the Nasdaq Capital Market.

Filing Explained

During the Nasdaq exception period, the company must promptly report significant compliance-related events; the Panel may reconsider the exception and request more information before accepting compliance documents, so the path to continued listing remains subject to ongoing Panel review.

Stockholders’ equity $2,299,129 Reported in Form 20-F for the period ended December 31, 2025
Nasdaq equity requirement $2,500,000 Minimum stockholders’ equity under Nasdaq Listing Rule 5550(b)(1)
Shares to EnChem owners 142,848,176 shares Company Class A ordinary shares to be issued for all EnChem America equity at merger closing
Post-merger ownership for Target shareholders 85% of fully-diluted shares Stake EnChem America owners will hold in TGHL after completion of the merger
Nasdaq exception deadline December 2, 2026 Date by which TGHL must demonstrate compliance with Nasdaq initial listing standards
minimum bid price requirement regulatory
"the minimum bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2)"
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.
Nasdaq Listing Rule 5550(b)(1) regulatory
"minimum shareholders’ equity criteria of $2,500,000 in stockholders’ equity required under the Nasdaq Listing Rule 5550(b)(1)"
change in control regulatory
"the Merger will constitute a change in control and require the new entity to meet Nasdaq’s initial listing standards"
A "change in control" occurs when the ownership or management of a company shifts significantly, such as through a merger, acquisition, or sale of a large part of its assets. This change can impact how the company is run and may influence its future direction. For investors, it matters because it can affect the company's stability, strategy, and value, often signaling potential changes in investment risk or opportunity.
fully-diluted shares financial
"such greater number of Company Class A ordinary shares as shall constitute eighty-five percent (85%) of the fully-diluted shares of the Company"
Fully-diluted shares are the total number of a company’s common shares that would exist if every outstanding option, warrant, convertible security and other promise to issue stock were converted into shares. Investors use this number to see the true size of the ownership pie and to calculate realistic per-share values and ownership percentages; it’s like counting all potential slices of a pizza, not just the ones already served.
forward-looking statements regulatory
"This communication contains forward-looking statements within the meaning of Section 27A"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

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

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FAQ

What Nasdaq listing issues does TGHL currently face?

TGHL has fallen below Nasdaq’s $1.00 minimum bid price and the $2,500,000 stockholders’ equity requirement, reporting only $2,299,129. Nasdaq issued a delisting determination, but a Panel granted a conditional extension to demonstrate full compliance by December 2, 2026.

What merger has TGHL (symbol TGHL) agreed with EnChem?

TGHL signed a July 14, 2026 Merger Agreement with EnChem Co., Ltd. and EnChem America, Inc. A TGHL Merger Sub will merge into EnChem America, making it a wholly owned subsidiary and effecting a change in control subject to Nasdaq initial listing standards.

How many TGHL shares will EnChem owners receive in the merger?

At closing, all EnChem America equity will be exchanged for 142,848,176 TGHL Class A ordinary shares, or a higher number equaling 85% of TGHL’s fully diluted shares. This will give EnChem’s owners a controlling stake in the combined company.

What is the Nasdaq compliance deadline for TGHL (TGHL)?

The Nasdaq Hearings Panel set December 2, 2026 as the deadline for TGHL to demonstrate compliance with Nasdaq’s initial listing standards. Continued listing depends on satisfying these conditions during the exception period granted in the Decision Letter.

Could TGHL (symbol TGHL) still be delisted from Nasdaq?

Yes. The Panel reserved the right to reconsider the exception, and TGHL must meet Nasdaq initial listing standards by December 2, 2026. Failure to satisfy the conditions or adverse developments could lead Nasdaq to proceed with delisting.

Why will the EnChem merger trigger a change in control at TGHL?

Upon completion, EnChem America’s owners will receive TGHL shares equal to 85% of fully diluted stock. This ownership shift constitutes a change in control, requiring the combined entity to satisfy Nasdaq’s initial listing standards rather than just continued listing rules.

 

 

 

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 August 2026

 

Commission File Number: 001-42814

 

THE GROWHUB LIMITED

(Translation of registrant’s name into English)

 

60 Paya Lebar Road

#12-37 Paya Lebar Square

Singapore 409051

 

(Address of principal executive office)

 

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 ☐

 

 

 

 

 

 

As previously disclosed in the Report of Foreign Private Issuer on Form 6-K furnished to the Securities and Exchange Commission (the “SEC”) on December 5, 2025, The GrowHub Limited (the “Company”) received a letter from the Listing Qualifications staff of The Nasdaq Stock Market (“Nasdaq” or the “Exchange”) notifying the Company that the minimum bid price per share of its Class A ordinary shares was below $1.00 for a period of 30 consecutive business days and that the Company did not meet the minimum bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2). Nasdaq had provided the Company with an 180 calendar days compliance period, or until June 1, 2026, in which to regain compliance with Nasdaq’s minimum bid price requirement.

 

In addition, as previously disclosed on Form 6-K furnished to the SEC on May 28, 2026, the Company received written notification from Nasdaq dated May 26, 2026 indicating that, based on the reported stockholders’ equity of $2,299,129 of the Company as reported in its Form 20-F for the period ended December 31, 2025, filed with the Securities and Exchange Commission on May 15, 2026, the Company does not meet the minimum shareholders’ equity criteria of $2,500,000 in stockholders’ equity required under the Nasdaq Listing Rule 5550(b)(1) for continued listing.

 

On June 5, 2026, the Company received a Staff Determination Letter from the Listing Qualifications Department of Nasdaq, notifying the Company that Nasdaq has determined to delist the Company’s securities from The Nasdaq Capital Market unless the Company timely requests a hearing before the Nasdaq Hearings Panel (the “Panel”).

 

The Company requested a hearing (the “Hearing”) to appeal the delisting process before the Panel. The Hearing was held on July 16, 2026, at which the Company’s management and outside counsel presented its compliance plan. On July 29, 2026, the Company received a letter (the “Decision Letter”) from Nasdaq, informing the Company that the Panel has determined to grant the Company an exception to complete its compliance plan and to continue its listing on Nasdaq subject to the conditions described in the Decision Letter.

 

As further disclosed on Form 6-K furnished to the SEC on July 15, 2026, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) dated as of July 14, 2026, by and among the Company, EnChem Co., Ltd., a corporation organized under the laws of the Republic of Korea (the “Target Shareholder”), and EnChem America, Inc., a Georgia privately-held corporation and wholly-owned subsidiary of the Target Shareholder (the “Target”). The Merger Agreement provides that, among other things and upon the terms and subject to the conditions thereof, the Company will incorporate a wholly owned subsidiary in the State of Georgia, named “Merger Sub, Inc.” (the “Merger Sub”), and Merger Sub will merge with and into the Target, the separate corporate existence of Merger Sub will cease, and the Target will be the surviving corporation and a wholly-owned subsidiary of the Company (the “Merger”). Upon the effective time of the Merger, all of the issued and outstanding equity of the Target shall be canceled in exchange for the right to receive 142,848,176 Company Class A ordinary shares, or such greater number of Company Class A ordinary shares as shall constitute eighty-five percent (85%) of the fully-diluted shares of the Company. In light of the degree to which ownership will change to the Target Shareholders, the Merger will constitute a change in control and require the new entity to meet Nasdaq’s initial listing standards.

 

 

 

 

According to the Decision Letter, the Panel determined to grant the Company an exception for continued listing on the Exchange subject to that, on or prior to December 2, 2026, the Company will demonstrate compliance with the initial Listing Rules of the Exchange.

 

The Decision Letter further provides that, during the exception period, the Company is required to promptly notify Nasdaq of any significant events that may affect the Company’s compliance with Nasdaq requirements or its ability to satisfy the terms of the exception granted. The Panel also reserved the right to reconsider the terms of the exception based on any event or circumstance that would, in the Panel’s opinion, make continued listing of the Company’s securities on the Exchange inadvisable or unwarranted. In addition, any compliance document will be subject to review by the Panel, which may, in its discretion, request additional information before determining that the Company has complied with the terms of the exception.

 

The Company continues to work toward closing the Merger within the timeframe presented to the Panel. The completion of the Merger remains subject to the satisfaction of certain closing conditions set forth in the Merger Agreement. There can be no assurance that the Merger will be completed by December 2, 2026 or at all, or that the Company will ultimately regain compliance during the exception period or maintain compliance with other Nasdaq continued listing requirements.

 

Cautionary Note Regarding Forward-Looking Statements

 

This communication contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statements contained in this communication that are not statements of historical fact may be deemed forward-looking statements. Words such as “continue,” “will,” “may,” “could,” “should,” “expect,” “expected,” “plans,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” and similar expressions are intended to identify such forward-looking statements. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of the Company and are difficult to predict. Examples of such risks and uncertainties include, but are not limited to, whether to the Company will be able to negotiate and enter into the definitive agreements with respect to the Merger, whether all conditions precedent in such definitive agreements will be satisfied, whether the closing of such transaction will occur and whether the Company will achieve its goals. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in the most recent annual report on Form 20-F and current reports on Form 6-K filed or furnished by the Company with the Securities and Exchange Commission. The Company anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. The Company assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing the Company’s plans and expectations as of any subsequent date.

 

 

 

 

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.

 

Date: August 3, 2026 THE GROWHUB LIMITED
     
  By:  /s/ Chan Choon Yew Lester
    Chan Choon Yew Lester
    Chief Executive Officer
    (Principal Executive Officer)