SU Group Holdings receives Nasdaq non-compliance notice

Published 25/03/2025, 21:18
SU Group Holdings receives Nasdaq non-compliance notice

SU Group Holdings Limited (NASDAQ:SUGP), a company specializing in security services with a market capitalization of $12.6 million, disclosed today that it has received a notification from The Nasdaq Stock Market LLC regarding non-compliance with the minimum bid price requirement. The company’s shares, currently trading at $0.87, have closed below the $1.00 threshold for 30 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2). According to InvestingPro data, the stock has experienced significant volatility, falling 68% over the past year.

The notice, which does not immediately affect the company’s Nasdaq listing, triggers a 180-day period for SU Group Holdings to regain compliance. The deadline to meet the minimum bid price requirement is set for September 16, 2025. During this period, if the company’s stock closes at $1.00 or higher for at least 10 consecutive business days, Nasdaq will confirm compliance and close the matter. Despite recent challenges, InvestingPro analysis shows the company maintains strong financial health with a current ratio of 2.54 and holds more cash than debt on its balance sheet.

SU Group Holdings is considering measures, including a potential reverse stock split, to address the bid price deficiency and comply with Nasdaq’s requirements. The company’s executive leadership, under Chief Executive Officer and Chairman Chan Ming Dave, is monitoring the situation closely and exploring all available options to rectify the situation and maintain its listing status. Despite the stock price challenges, the company remains profitable with a gross profit margin of 26% and trades at a P/E ratio of 10.07, suggesting relatively modest valuation levels.

This news comes after the company, formerly known as SU Group Holdings Limited, underwent a name change on March 16, 2023. Its primary business operations are based in Kowloon, Hong Kong, providing a range of security services.

Investors and stakeholders were informed of this development through a Form 6-K filing, a report of foreign private issuers required by the United States Securities and Exchange Commission for cross-listed companies. SU Group Holdings will keep the market updated on its progress towards regaining compliance with Nasdaq’s listing rules.

In other recent news, SU Group Holdings Limited has announced its involvement in supplying access control gates for a major multi-purpose sports, entertainment, and leisure park in Asia. This installation aims to enhance security, crowd management, and operational efficiency during large-scale events. The company’s Chairman and CEO, Dave Chan, highlighted the project’s potential to significantly boost revenue by 2025, emphasizing its importance for the company’s visibility and business expansion. The access control gates are designed with advanced features such as integration with metal detectors, surveillance cameras, automated ticket verification, and data analytics capabilities to improve event management. These gates also play a crucial role in ensuring compliance with health and safety regulations, which is particularly important during health emergencies. SU Group has been active for over two decades, providing security-related engineering services in Hong Kong. The company’s recent announcement is based on a press release and includes forward-looking statements that involve risks and uncertainties. These statements reflect SU Group’s current expectations for future events that could impact financial performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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