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Agroz Inc. Faces Nasdaq Delisting and Implements Compliance Strategy

Agroz Inc. (Nasdaq: AGRZ), a prominent player in agricultural technology, has recently disclosed receiving a pivotal Staff Determination Letter from Nasdaq, indicating a serious compliance issue. The letter, dated August 18, 2026, stated that Agroz's shares had closed below the required minimum bid price of $1.00 for 30 consecutive business days, leading to a potential delisting from the Nasdaq Capital Market.

Key Issues Leading to Non-Compliance

The documents highlight several factors contributing to this situation. Primarily, Agroz's ordinary shares have failed to meet the essential equity requirements set forth by Nasdaq. Additionally, the company did not inform Nasdaq of its plans to rectify the bid-price deficiency through a reverse share split within the stipulated period, an important part of compliance regulations.

Moreover, Agroz has not yet submitted its annual report on Form 20-F for the fiscal year ending December 31, 2025. Failure to adhere to Nasdaq Listing Rule 5250(c)(1) regarding timely filing also played a crucial role in their current predicament. The combination of these issues left the company vulnerable to delisting proceedings.

Requesting a Hearing

Agroz is not taking this situation lightly. The company plans to appeal the Nasdaq Staff Determination by submitting a request for a hearing before the Nasdaq Hearings Panel by the deadline of August 25, 2026. This appeal could provide temporary relief from the impending suspension and delisting processes while the panel assesses the situation. However, successful outcomes from these hearings can never be guaranteed.

Proactive Compliance Measures

Demonstrating initiative, Agroz has already begun implementing a compliance strategy to address the outlined issues. The company is preparing for a proposed 1-for-10 reverse share split to raise the trading price of its ordinary shares, a measure believed to help satisfy Nasdaq’s minimum bid price requirement. This action aims to enhance the attractiveness of their shares in the market.

Additionally, the company has selected Golden Eagle CPAs LLC, a U.S.-based public accounting firm registered with the Public Company Accounting Oversight Board, to expedite the necessary audit processes to complete the Form 20-F, which is a crucial compliance document. Agroz aims to file the report by mid-October 2026, although they acknowledge that this timeline may be subject to delays based on external factors.

Commitment to Transparency

CEO Gerard Lim has expressed that management and the board consider these compliance matters an immediate priority. Agroz is committed to collaborating transparently with Nasdaq throughout the hearing and compliance processes. Lim emphasized that the company is taking actionable steps, such as advancing the reverse share split and augmenting resources to finalize their outstanding report on time.

Despite these compliance challenges, Agroz’s operational endeavors, including innovative agricultural practices aimed at delivering fresh, nutritious produce, remain unaffected. The company is dedicated to its core business model while concurrently navigating these regulatory hurdles.

Next Steps

If Agroz fails to submit the hearing request by the stated deadline, Nasdaq has indicated that trading of its shares would cease at the start of business on August 27, 2026. This would trigger formal delisting procedures, potentially jeopardizing the company's market position and investor confidence.

The actions taken by Agroz today are critical as they seek to ensure compliance with Nasdaq's listing requirements and maintain a foothold in the capital market.

In summary, while Agroz Inc. faces significant challenges ahead, their commitment to compliance and transparency, combined with proactive measures, demonstrates a focused intent on addressing these issues head-on. The forthcoming hearings will play a key role in determining the future of Agroz under the Nasdaq umbrella.