Company: UHG
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001830188-25-000079
Chunk: 11

Company: United Homes Group, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 4
Chunk 11
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 the market price of UHG’s Class A common stock. When the market price of a stock has been volatile, holders of that stock will sometimes file securities class action litigation against the company that issued the stock. If any shareholders were to file a lawsuit, UHG could incur substantial costs defending the lawsuit, which could also divert the time and attention of management.

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If UHG is unable to timely identify and recruit additional board members, UHG’s Class A Common Stock may be subject to delisting.

Following UHG’s October 20, 2025 announcement regarding the resignation or planned resignation of substantially all of the members of the board of directors, UHG’s Executive Chairman and continuing member of the Board is working to identify replacement directors with the requisite qualifications in order to maintain compliance with the requirements under Nasdaq Listing Rule 5605 (the “Corporate Governance Requirements”). In light of UHG’s status with respect to appointment of replacement directors, directors Robert Dozier Jr., Jason Enoch, and Alan Levine informed UHG of their willingness to remain on the Board and applicable committees beyond November 14, 2025, to ensure an orderly transition as director candidates are identified and recruited in order to maintain compliance with the Corporate Governance Requirements. There can be no assurance that UHG will be able to maintain compliance with Nasdaq’s listing standards. If UHG is unable to maintain compliance with Nasdaq’s listing standards, UHG’s common stock may become subject to delisting. A delisting of UHG’s Class A common stock from Nasdaq may materially impair stockholders’ ability to buy and sell UHG’s Class A common stock and may adversely affect both the market for and the liquidity of UHG’s Class A common stock. If UHG’s stock is delisted from Nasdaq, whether by choice or otherwise, such delisting could significantly impair UHG’s ability to raise capital and negatively impact stockholder value.

The recent announcement regarding the planned resignations of substantially all of the members of UHG’s board of directors has caused significant operational difficulty, and UHG expects such operational difficulties to continue and potentially increase until a satisfactory replacement board is seated. 

Since UHG’s announcement on October 20, 2025 regarding the resignation or planned resignation of substantially all of the members of the board of directors, UHG has faced significant operational difficulties. Numerous key counterparties, including UHG’s auditors, lenders, land banking partners, and insurers have expressed concern regarding UHG’s ongoing corporate governance. Management of UHG has been