Webuy Global's Nasdaq Listing at Risk Over Equity Shortfall

SINGAPORE – January 09, 2026 – WEBUY GLOBAL LTD (Nasdaq: WBUY), a social commerce and travel platform focused on Southeast Asia, is facing a critical challenge to its status as a publicly traded company. The firm announced today it has received a notification from Nasdaq for failing to meet the minimum stockholders' equity requirement for continued listing, placing its future on the exchange in jeopardy.

The notice from The Nasdaq Stock Market's staff states that Webuy is not in compliance with Listing Rule 5550(b)(1), which mandates that listed companies maintain a minimum of $2,500,000 in stockholders’ equity. According to the company's own financial disclosures, its position is significantly below this threshold.

A Widening Gap on the Balance Sheet

The deficiency notice was triggered by Webuy's Form 6-K, filed on October 29, 2025, which contained its unaudited financial statements for the six months ending June 30, 2025. The filing revealed that the company’s stockholders’ equity had fallen to just $364,584. This represents a shortfall of more than $2.1 million from the Nasdaq requirement.

Furthermore, Nasdaq confirmed that as of January 5, 2026, the company did not meet the alternative compliance standards, which involve either a minimum market value of listed securities or a certain level of net income from continuing operations. The company's financial health has been under scrutiny, with an Altman Z-Score of -3.80 indicating a heightened risk of financial distress. The stock also carries a relatively high short interest of 4.50%, suggesting that some market participants are betting against its recovery.

This financial pressure comes despite some earlier positive signals. The company had reported its first-ever quarterly profit in the fourth quarter of 2024 and executed a 1-for-120 reverse stock split in April 2025, a move often intended to increase the per-share price and maintain compliance with other Nasdaq rules. However, these measures have evidently not been enough to shore up its underlying equity base, which has eroded significantly.

The Clock is Ticking on Nasdaq

While the notification letter has no immediate effect on the trading of Webuy’s Class A Ordinary Shares, which continue to trade under the symbol “WBUY,” it starts a regulatory countdown. In accordance with Nasdaq Listing Rules, Webuy has been given 45 calendar days, until February 19, 2026, to submit a detailed plan outlining how it intends to regain compliance.

If Nasdaq accepts the plan, the exchange may grant an extension of up to 180 calendar days from the date of the original notification for the company to implement its strategy and evidence compliance. During this period, Webuy's business operations are not expected to be affected.

However, there is no guarantee that the company's plan will be accepted or that it will succeed in restoring its stockholders' equity to the required level. Failure to do so would likely result in the company's shares being delisted from The Nasdaq Capital Market. Such an outcome would severely limit its access to public capital markets, reduce liquidity for its stock, and damage investor confidence, potentially hampering its growth ambitions in the competitive Southeast Asian market.

Strategic Pivots Amid Financial Pressure

In its press release, Webuy confirmed it is “evaluating a range of measures to regain and sustain compliance” and intends to submit its plan by the deadline. This financial challenge arrives as the company is actively pursuing an ambitious growth and innovation strategy. Its business model, which combines social commerce for groceries with travel services, relies on a network of community “Group Leaders” to drive bulk purchases and build customer loyalty.

In recent months, the company has announced several strategic initiatives aimed at expansion. In December 2025, it opened a new travel retail outlet in Surabaya, Indonesia, and announced a partnership with WITSTAR Group to enter the cross-border education market. Earlier, in the summer of 2025, it launched an AI-powered travel assistant device and integrated Coinbase for stablecoin payments, signaling a commitment to technological innovation.

These moves are part of a broader strategy to build an integrated travel and e-commerce ecosystem across Indonesia, Singapore, and other international markets. The company also noted it had streamlined its cost base by over 30% in 2024 to focus resources on more scalable business lines like travel. The critical question now is whether these growth-oriented projects can generate sufficient profitability quickly enough to repair the company's weakened balance sheet.

The Path Back to Compliance

To increase its stockholders' equity above the $2.5 million threshold, Webuy must undertake significant financial restructuring. The most direct path involves raising new capital. The company has already tapped the markets recently, closing a follow-on offering in August 2025. It will likely need to pursue further equity financing, either through private placements or additional public offerings, to inject the necessary cash into its equity account.

Other potential strategies include converting existing debt into equity, which would reduce liabilities and boost equity simultaneously, or selling non-core assets to strengthen its financial position. Ultimately, the most sustainable solution is achieving consistent and substantial profitability, which would increase retained earnings over time. While the company achieved a single profitable quarter in late 2024, sustaining that performance has proven difficult.

Investor sentiment appears cautious. Recent data shows a lack of new institutional investment, with at least one major holder, UBS Group AG, completely divesting its position in the third quarter of 2025. Webuy's management now faces the difficult task of convincing both Nasdaq regulators and the investment community that its strategic initiatives can deliver tangible financial results, all while navigating the intense pressures of the public market and a highly competitive regional tech landscape.