Real Good Food Company's Transition Away from Nasdaq to OTC Markets

Real Good Food Company announced in early 2025 that it received a delisting notice from Nasdaq due to non-compliance with financial reporting requirements under Nasdaq Listing 5250©(1). This marks a significant shift for the health-focused frozen foods manufacturer that has built its real good brand around nutritious meal solutions.

Why Real Good Products Lost Major Exchange Status

The delisting stems from the company’s failure to file periodic financial reports on time, a critical compliance requirement for maintaining Nasdaq listing status. Trading of real good common stock was suspended on January 7, 2025, signaling the end of the company’s tenure on a major U.S. exchange. This transition represents a substantial credibility challenge for a company that previously traded under ticker symbol RGF and had maintained listings through years of market fluctuations.

The compliance issues appeared suddenly despite Real Good’s established market presence, which includes over 16,000 retail locations nationwide stocking their products. The company’s social media presence, particularly strong within the frozen food industry, suggests robust consumer engagement even as regulatory challenges mounted behind the scenes.

The Real Good Orange Chicken Challenge and Market Impact

As a company known for low-sugar, high-protein frozen meal options—including products like their popular real good orange chicken—Real Good Foods faced immediate consequences from the delisting. The transition to over-the-counter markets beginning January 7, 2025, opened the door for potential movement to OTC’s “Expert Market,” where public quote availability becomes severely restricted.

This downgrade affects product distribution and brand perception. Retail partners and consumers who tracked the company’s financial stability through major-exchange listings now face uncertainty. The OTC transition potentially undermines consumer confidence in product quality and company longevity, particularly for a brand built on transparency and wellness messaging.

The real good brand emphasizes mission-driven nutrition—delivering foods consumers “feel good about eating.” This messaging carries less weight when the company itself struggles with regulatory visibility in financial markets.

Institutional Investors’ Shifting Positions

Hedge fund and institutional investor behavior during Q3 2024 revealed early concerns about Real Good’s trajectory. BLEICHROEDER LP completely exited its position with a full 200,000-share liquidation, while BRIDGEWAY CAPITAL MANAGEMENT LLC removed 50,000 shares entirely. TAYLOR FRIGON CAPITAL MANAGEMENT LLC reduced holdings by 5.9%, signaling cautious repositioning.

Not all institutions fled. SUSQUEHANNA INTERNATIONAL GROUP added 41,022 shares, increasing its stake by 172.4%, suggesting some market players viewed the discounted pricing as opportunistic. PINNACLE ASSOCIATES and SQUAREPOINT OPS also initiated new positions despite the broader delisting trajectory.

These divergent moves reflect typical market behavior when smaller-cap companies face regulatory challenges—some investors exit to manage risk, while opportunistic funds enter at reduced valuations.

What’s Next for Real Good Foods

The immediate future involves transitioning trading operations to the Pink Open Market, operated by OTC Markets Group, also known as the “pink sheets.” This shift provides continued market access but substantially reduces visibility and liquidity compared to Nasdaq trading.

If Real Good Foods fails to resolve its filing compliance issues, the stock could migrate further to the OTC’s “Expert Market,” where quotes become unavailable for public viewing. This outcome would further isolate real good products and company shares from mainstream investor access.

The company maintains its core mission of providing real good frozen and refrigerated food options across breakfast, lunch, dinner, and snack categories. However, the path forward depends on whether management can resolve outstanding financial reporting issues and restore regulatory compliance. Without swift action, the real good brand’s market perception may continue deteriorating alongside its trading status.

The delisting serves as a cautionary reminder that even established consumer brands with strong retail distribution and engaged customer bases remain vulnerable to operational and compliance failures in their administrative and financial functions.