Nasdaq Initiates Delisting Process for DUG Foodtech Shares on First North Growth Market
Nasdaq First North Growth Market announced on November 29, 2025, its intent to submit a formal request to the Disciplinary Committee for delisting DUG Foodtech AB (publ) shares, citing repeated non-compliance with continued listing requirements despite prior observation status and remediation extensions, amid the beverage innovator's ongoing financial distress. Trading persists on Nasdaq First North (ticker: DUG), but suspension looms post-review; the Swedish firm, known for plant-based drinks, secured MSEK 1.5 (~$140K) loans from major shareholders on Nov 30 to bolster liquidity.
Non-Compliance Violations and Timeline
DUG Foodtech failed to meet minimum market value (SEK 3M), equity ratio (>10%), and public float standards under Nasdaq First North rules, following observation since early 2025 after Q4 2024 losses (MSEK -15 revenue vs. -20 prior) and directed issues (e.g., SEK 30M units Nov). Nasdaq granted extensions but deemed issues "sustained"; prior observation lifted temporarily (per company IR), yet breaches recurred amid biotech funding squeeze.
Company Financial Snapshot
DUG develops vegetable-based beverages (e.g., Veg of Lund brand), post-merger with Lund-based assets; H1 2025 revenue SEK 12M (-10% YoY), EBITDA -SEK 8M on R&D/marketing, cash burn SEK 20M with runway <6 months pre-loans. Market cap ~SEK 5M; shares volatile (52W SEK 0.10-0.50), YTD -60% on dilution and sales misses versus peers like Oatly.
Delisting Process and Implications
Nasdaq submits to committee within days; hearing ~2-4 weeks, with 80% historical delistings for microcaps in distress—successful appeals rare without fixes (e.g., rights issue). Post-delisting: OTC/NGM Equity trading, liquidity drop 70-90%, institutional exit; DUG eyes restructuring but risks insolvency amid SEK 50M debt.
DUG's innovation niche offers rebound potential if funded, but delisting accelerates distress—watch committee verdict mid-Dec.
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