Functional Brands Inc. 8-K

What Happened

• Functional Brands Inc. (ticker: MEHA) filed an 8-K on Jan. 2, 2026 disclosing that on Dec. 30, 2025 the Nasdaq Listing Qualifications Department notified the company its common stock has traded below the $1.00 minimum bid price for the last 30 consecutive business days, triggering a deficiency under Nasdaq Listing Rule 5550(a)(2). The notice does not remove the listing immediately and the shares continue to trade on The Nasdaq Capital Market.

Key Details

• Nasdaq provided a 180-calendar-day compliance period ending June 29, 2026 to regain the $1.00 minimum bid price.
• To regain compliance automatically, the company must have a closing bid of at least $1.00 for at least 10 consecutive business days during the compliance period.
• If not cured, the company may be eligible for a second 180-day extension only if it meets the market value of publicly held shares and all other initial listing standards (except the bid-price rule) and notifies Nasdaq of its intent to cure.
• The company said it will monitor the situation and may consider options such as a reverse stock split; it also noted the right to appeal any delisting decision to a Nasdaq hearings panel.

Why It Matters

• For investors, this notice signals an elevated risk that MEHA could be delisted from Nasdaq if the company cannot raise its share price or otherwise satisfy Nasdaq’s criteria. Delisting can reduce liquidity, limit access to institutional investors, and materially affect share value.
• The company currently retains normal trading, and there is a defined window (through June 29, 2026, possibly extendable) to cure the deficiency, so shareholders have time to monitor developments and any corporate actions (e.g., reverse split) intended to restore compliance.