Fenbo Holdings Ltd (NASDAQ:FEBO), a $16.37 million market cap manufacturer of electric housewares and fans, has been notified by the Nasdaq Stock Market of non-compliance with its listing rules, specifically for failing to hold an annual shareholder meeting within the required timeframe after its fiscal year-end on December 31, 2023.
According to InvestingPro analysis, the company's overall financial health score is rated as WEAK, with significant challenges ahead.
The company received a Determination Letter from Nasdaq on January 16, 2025, stating that it had not met the Annual Meeting Requirement, as stipulated by Nasdaq Listing Rule 5620(a) and 5810(c)(2)(G). The notice does not immediately affect Fenbo Holdings' listing status, but the company must submit a plan to regain compliance by March 3, 2025. While the company maintains a healthy current ratio of 2.47, InvestingPro data reveals concerning trends, including rapid cash burn and high price volatility. Subscribers can access 8 additional key insights about FEBO's financial position.
Fenbo Holdings is currently preparing for an annual meeting to address this issue and expects to return to compliance following the meeting. The company plans to submit a compliance plan and, if accepted by Nasdaq, may receive an extension of up to 180 days from its fiscal year-end, or until June 30, 2025, to meet the requirement.
However, there is no guarantee that Nasdaq will accept the company's compliance plan, or that the company will be able to meet the conditions within any granted extension period. Should the plan be rejected, Fenbo Holdings will have the right to appeal the decision to a Nasdaq Hearing Panel, as outlined in Nasdaq Listing Rule 5815(a).
Failure to regain compliance with the listing rules, including any extension period granted by Nasdaq, could lead to the delisting of Fenbo Holdings' securities from the Nasdaq Stock Market. This announcement is based on a press release statement and the company's recent SEC filing.
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