Cannabis tech company Agrify Corp. said it will keep its listing on the Nasdaq for now as it works to meet the exchange’s requirements surrounding minimum stockholders’ equity.
The Wednesday listing news follows several developments reported by Agrify last week, which include:
- Boosting its maximum number of authorized shares from 10 million to 35 million.
- Consolidating debt held by its new lender, CP Acquisitions (affiliated with Agrify CEO and board Chair Raymond Chang and board member I-Tseng Jenny Chan), into one convertible note, with $3.9 million of that debt converted into equity at a premium.
- A previous secured lender exercising warrants in exchange for shares, “thus greatly reducing the number of outstanding warrants.”
Agrify said last week that those moves were “expected to result in a reduction in liabilities on the company’s balance sheet” to comply with the Nasdaq rule.
The Nasdaq Capital Market’s equity-standard rule requires a listed company’s primary equity security to have at least $2.5 million in stockholders’ equity.
The company announced Wednesday that it had a Jan. 11 hearing before a Nasdaq panel, which granted an extension until April 15 to comply with the rule.
“Additionally, (Agrify) continues to settle and resolve various prior legal and trade payables in order to reduce the outstanding liabilities and improve the equity position of the company,” the company said in a statement.
Troy, Michigan-based Agrify has faced previous issues complying with the Nasdaq’s listing requirements, receiving warnings for being late to file financial reports.
Agrify also consolidated its shares in 2023 to meet the stock exchange’s minimum bid-price requirement.
The stockholders’ equity warning issued Dec. 1 is the only remaining warning for Agrify on Nasdaq’s noncompliance list.
Chang has said the company is “committed to turn the business profitable in the shortest time possible.”
The company’s shares trade as AGFY on the Nasdaq, where they have once again fallen below $1 per share.