Cannabis technology firm Agrify Corp. said it has regained compliance with Nasdaq’s stock listing rules after converting $13.8 million of debt to equity.
“The $13.8 million debt-to-equity conversion is a very significant commitment from the management and the leading shareholders to ensure the ongoing Nasdaq listing,” Agrify Chair and CEO Raymond Chang said in a statement.
Two entities linked to Chang, CP Acquisitions and GIC Acquisition, completed the conversion on May 22.
“In the last few months, we have made tremendous progress towards cleaning up our balance sheet, reducing our cash burn, and growing our business,” Chang said.
“The work is not yet over, and we remain committed to ensuring a full turnaround and creating long term shareholder value.”
The Nasdaq issued a stockholders’ equity warning to Troy, Michigan-based company on Dec. 1, 2023.
Agrify has struggled to comply with the Nasdaq’s listing requirements. The company:
- Received warnings for being late to file financial reports.
- Consolidated its shares in 2023 to meet the stock exchange’s minimum bid-price requirement.
The company’s shares trade as AGFY on the Nasdaq, where they were less than 50 cents a share Wednesday.
