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HONG KONG - Primega Group Holdings Limited (NASDAQ:PGHL), a Hong Kong-based transportation services provider, has been notified by The Nasdaq Stock Market that it currently does not meet the minimum bid price requirement for continued listing on the exchange. Currently trading at $0.63, the company’s shares have been trading below the $1 threshold from January 28, 2025, to March 11, 2025, prompting the notice. The stock has experienced significant pressure, falling over 55% year-to-date. InvestingPro analysis reveals multiple warning signs, with 11 additional ProTips available to subscribers.
Nasdaq rules stipulate that listed companies must maintain a minimum bid price of $1 per share. While the notification does not have an immediate impact on the trading of Primega Group’s shares, it triggers a 180-day period, ending on September 8, 2025, for the company to regain compliance. Despite the price challenges, InvestingPro data shows the company maintains solid fundamentals with a current ratio of 2.12 and moderate debt levels. If Primega Group fails to meet the requirement within this timeframe, it may be granted an additional 180 days if it meets all other initial listing standards, except for the bid price, and provides a plan to address the deficiency, potentially through a reverse stock split.
The company has expressed its intent to explore options to regain compliance and meet Nasdaq’s continued listing standards. According to InvestingPro Fair Value analysis, the stock appears undervalued at current levels, with revenue growth of 56% in the last twelve months. However, there is no guarantee that Primega Group will be able to achieve this, and failure to do so could lead to delisting from the exchange.
Primega Group specializes in transportation services that support the reuse of construction and demolition materials, aiming to reduce waste in the industry. Its services include soil and rock transportation, diesel oil trading, and construction works such as excavation and lateral support works and bored piling. The company operates primarily as a subcontractor within the Hong Kong construction sector.
This news comes as a significant development for investors and stakeholders of Primega Group, who will be closely monitoring the company’s efforts to maintain its Nasdaq listing. The information in this article is based on a press release statement from Primega Group Holdings Limited.
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