Why Did FGL Stock Slump To A Record Low Today?

• The reverse split will take effect on February 10.
• About 32.2 million Class A and 9.3 million Class B shares will be consolidated to roughly 321,781 and 93,247 shares, respectively.
• The company had received a Nasdaq listing requirement notice last November.
   

Shares of Founder Group (FGL) tanked 40% to an all-time low on Friday after the company announced a 1-for-100 reverse split, which will take effect on February 10.

The company stated that following the reverse split, around 32.2 million Class A shares and roughly 9.3 million no-par Class B outstanding shares will be reduced to 321,781 Class A shares and 93,247 Class B shares, respectively.

FGL stock will continue trading on the Nasdaq Capital Market under the same ticker. The move is aimed at boosting the share price to regain compliance with Nasdaq’s minimum bid price requirement.

Nasdaq’s Listing Notice

Last November, Nasdaq notified the company that it no longer met the $1 minimum bid price requirement for continued listing after its Class A shares under Nasdaq Listing Rules 5550(a)(2). Under the rules, if a company’s share price stays below $1 for 30 consecutive business days, Nasdaq issues a deficiency notice and gives the company 180 days to regain compliance by keeping the bid above $1 for at least 10 straight sessions.

According to its latest financial update filed with the SEC in November, Founder Group’s revenue for the half year ended June 2025 increased by 82%, but its net loss widened by nearly a third.

In September, the company had signed an agreement with Planet QEOS to jointly develop a large-scale renewable energy facility in Sarawak, Malaysia, valued at around $276 million.

How Did Stocktwits Users React?

Retail sentiment on Stocktwits remained in the ‘bullish’ zone over the past 24 hours, amid ‘extremely high’ message volumes.

One user anticipates a decent run-up for the stock.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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