Galaxy Payroll Group Limited (Nasdaq: GLXG) has been granted an additional 180-day compliance period by Nasdaq to regain compliance with the minimum bid price requirement. The notification letter dated September 16, 2025, confirms that the company now has until March 16, 2026, to address the deficiency in its stock price.
The company initially received a notice from Nasdaq on March 17, 2025, indicating that the closing bid price of its ordinary shares had remained below $1.00 per share for 30 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2). The initial 180-day grace period expired on September 15, 2025, prompting the need for an extension.
Nasdaq's decision to grant the additional compliance period is based on Galaxy Payroll Group meeting the continued listing requirement for market value of publicly held shares and all other applicable initial listing standards for the Nasdaq Capital Market, except for the bid price requirement. The company has provided written notice to Nasdaq of its intention to cure the deficiency during the second compliance period, potentially through implementing a reverse stock split.
According to Nasdaq's notification, if the closing bid price of the company's ordinary shares reaches $1.00 per share or more for a minimum of 10 consecutive business days at any time before March 16, 2026, Nasdaq will provide written confirmation of compliance, effectively resolving the matter. This development is significant for investors and market participants as it provides Galaxy Payroll Group with additional time to stabilize its stock price without immediate threat of delisting.
Mr. Wai Hong Lao, Chief Executive Officer of the company, stated that they appreciate Nasdaq granting the additional time to resolve the bid price compliance matter, noting that it acknowledges the company's compliance with other key listing requirements. The company remains committed to enhancing shareholder value and executing its business strategy. For more information about the company's services and operations, visit https://www.galaxyapac.com.
The extension provides Galaxy Payroll Group with crucial breathing room to implement strategic measures that could positively impact its stock performance. For the payroll and HR outsourcing industry, this situation highlights the importance of maintaining compliance with exchange requirements while continuing business operations. The outcome could influence how other companies in similar positions approach Nasdaq compliance issues in the future.
