Functional Brands Inc. Update: Nasdaq Delisting Notice

Functional Brands Inc. (ticker: MEHA) focuses on health and wellness, operating the supplement brand Kirkman® and the telehealth platform Tru2u.health. If you follow the company, you may have seen some concerning news regarding their stock listing. Financial filings can be dense, so I’ve broken down what this means for you in plain English.

1. What happened?

Nasdaq has notified Functional Brands Inc. that it will be delisted. This means the company’s stock will no longer trade on the major Nasdaq exchange. Trading on the Nasdaq will officially stop when the market opens on June 16, 2026.

2. Why did it happen?

Nasdaq requires listed companies to maintain a minimum stock price of $1.00. In December 2025, the company was warned that its price had stayed below that threshold for too long.

While they were originally given until June 2026 to fix this, the situation accelerated. The stock price closed at or below $0.10 for ten consecutive trading days. This triggered an immediate delisting under Nasdaq’s "Low Priced Stocks Rule," which overrides the original grace period.

3. Why does this matter?

This is a significant red flag for investors. Being on the Nasdaq provides credibility and ensures high liquidity, which makes it easy to buy and sell shares.

If a company moves to "Over-the-Counter" (OTC) markets, it faces less strict reporting requirements. These markets often have lower trading volumes and wider price gaps, making it much harder to trade your shares at the price you want. It is a clear signal that the company is struggling to maintain its market value and financial standing.

4. Who is affected?

• Investors: If you own shares, this is a high-risk situation. Delisting often leads to a drop in share price and makes it difficult to exit your position at a fair value.
• The Company: Losing a major listing makes it harder for the business to raise new capital. It may also trigger "default" clauses in existing debt agreements that require a Nasdaq listing to remain in good standing.
• Operations: This level of uncertainty can impact company morale and complicate relationships with vendors or business partners.

5. What happens next?

The company has the option to appeal by requesting a hearing before a Nasdaq panel. To do this, they must file a request and pay a $20,000 fee by 4:00 p.m. ET on June 16, 2026.

Important: Filing an appeal does not stop the suspension of trading. Trading will still cease on June 16. There is no guarantee that the panel will grant a stay, or that the company can successfully use strategies like a reverse stock split to regain the $1.00 minimum price.

6. What should you do?

• Assess your risk tolerance: Delisting is a high-stakes event. If you are holding shares, consider whether you are comfortable with the potential for extreme price swings and reduced liquidity.
• Avoid "hope-based" investing: While the company may attempt an appeal, the path to recovery for companies that trigger the "Low Priced Stocks Rule" is historically difficult and rarely successful.
• Monitor the news: Keep an eye on official press releases regarding the appeal process. Remember, regardless of what the company says, the stock will be removed from the Nasdaq on the scheduled date.

Disclaimer: I am breaking down the news for you—this is not financial advice! Delisting is a complex and risky situation. Always do your own research or talk to a qualified financial professional before making any moves with your money.