Megan Holdings Shareholders Approve 1-for-400 Reverse Stock Split to Avert Nasdaq Delisting

summarizeSummary

Megan Holdings shareholders approved a reverse stock split of up to 1-for-400, a key measure to avoid Nasdaq delisting. The board can now implement the split at its discretion within two years.

check_boxKey Events · Corporate Governance and Compliance · MGN

• Reverse Stock Split Approved

  Shareholders approved a reverse stock split of up to 1-for-400, with 256.4M votes for and 644K against. The board can implement the split in one or more tranches within two years.

• Nasdaq Compliance Strategy

  The reverse split is intended to raise the stock price above $1 to meet Nasdaq's minimum bid price requirement, following a non-compliance notice received in May 2026.

• M&A Amendments Passed

  Shareholders approved reducing the general meeting notice period from 10 to 5 clear days and postal service deemed delivery from 5 to 2 calendar days, effective immediately.

• Board Discretion on Timing

  The board has sole discretion to determine the exact split ratio (up to 1-for-400) and effective date, and may choose not to implement any split.

auto_awesomeAnalysis · MGN · Industrial Applications And Services

Shareholders overwhelmingly approved a reverse stock split of up to 1-for-400, giving the board authority to execute it within two years. This is a critical step to regain compliance with Nasdaq's minimum bid price rule after the company was notified of non-compliance in May 2026. The board now has the tool to boost the stock price above $1, but the split itself does not fix the underlying business challenges—declining profitability and negative cash flow reported in the 20-F. The approval also includes a reduction in meeting notice periods, which could allow the board to act more quickly on corporate actions.