International medical marijuana operator IM Cannabis Corp. has become the latest in the industry to receive a warning from the Nasdaq stock exchange over a share price falling below the exchange’s minimum bid price requirement.
IM Cannabis’ Nasdaq-traded shares (IMCC) fell below the exchange’s $1 minimum bid-price requirement for 30 consecutive business days as of July 31, the Glil Yam, Israel-based company disclosed in a news release.
Nasdaq-listed shares of IM Cannabis closed above $1 on Aug. 2.
IM Cannabis supplies medical cannabis to clients in Israel and Germany. Earlier this year, IM Cannabis exited the Canadian market and reorganized its business.
The company’s shares will have to maintain a closing bid price of at least $1 for at least 10 consecutive business days to regain compliance with Nasdaq’s listing rules.
“In the event the company does not regain compliance by January 29, 2024, the company may be eligible for additional time to regain compliance or may face delisting,” said IM Cannabis in its release.
Shares of IM Cannabis also trade as IMCC on the Canadian Securities Exchange, a listing that is unaffected by the Nasdaq warning.
Slumping share prices have been a thorn in the side of several Nasdaq-listed cannabis companies, leading a number of those firms to consolidate their shares to maintain their equity listings on the high-profile U.S. stock exchange.