On March 13, 2026, Fractyl Health, Inc. received a notification from the Listing Qualifications Department of The Nasdaq Stock Market LLC indicating that the company is not in compliance with Nasdaq Listing Rule 5450(a)(1). This rule requires that the minimum bid price of a company's common stock must be at least $1.00 per share. The notice states that Fractyl's stock price has been below this threshold for the previous 30 consecutive business days. The company has been granted a compliance period of 180 calendar days, expiring on September 9, 2026, to regain compliance. To do so, Fractyl must ensure that its stock price closes at $1.00 or more for at least 10 consecutive business days during this period. The notice does not currently affect the listing of the company's securities on the Nasdaq Global Market.

If Fractyl fails to meet the compliance requirements within the allotted time, it may be eligible for an extension by transferring to the Nasdaq Capital Market, provided it submits a Transfer Application and meets other listing standards. The company has indicated its intention to actively monitor its stock price and consider options such as a reverse stock split to address the deficiency. However, there is no guarantee that these measures will be successful in maintaining its listing on Nasdaq. This situation raises concerns about the company's operational execution and strategy outlook, as a delisting could significantly impact investor confidence and liquidity.

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