Aurora Cannabis has been notified by the Nasdaq that it does not meet the stock exchange’s listing standards after its stock price fell below the $1 minimum bid price requirement for 30 days in a row.
The Edmonton, Alberta-based cannabis producer has until Sept. 20 – 180 calendar days from the date of the notification letter – to regain compliance with the Nasdaq’s minimum-bid requirement.
Shares of the company were trading at approximately 70 cents (90 Canadian cents) on Friday afternoon.
If Aurora’s shares close at or above $1 per share for a minimum of 10 consecutive business days during the 180-day period, Nasdaq said it would provide written notification that Aurora had achieved compliance.
In a news release, Aurora said it intends to monitor the bid price for its shares and will consider “all available options to resolve the deficiency with every intention to regain compliance with the minimum bid price requirement.”
Aurora joined the Nasdaq after leaving the New York Stock Exchange in May 2021.
A number of cannabis companies trading on the Nasdaq have had experiences similar to Aurora’s.
Earlier this year, Brunswick-based Organigram Holdings also received a warning over its share price.
Organigram has until July 24 to bring its share price into compliance.
But Organigram might receive a 180-day extension before it faces possible delisting.
In January, Hexo Corp. regained compliance with the Nasdaq’s minimum bid price requirement, allowing it to continue listing its shares on the U.S. stock exchange.
In December 2022, the Gatineau, Quebec-based company announced it was consolidating its shares on a 14-to-1 basis.
That was the second time Hexo came under pressure by a major American stock exchange over its low stock price.
In 2020, Hexo received a noncompliance notification from the New York Stock Exchange after its shares fell below $1.
Hexo parted ways with the NYSE and listed its shares on the Nasdaq in 2021.