Publicly traded cannabis tech company Agrify Corp. has received a formal noncompliance notification from the Nasdaq, the latest predicament for the firm’s listing on the high-profile stock exchange.
“The staff determination has no immediate effect and will not immediately result in the suspension of trading or delisting of Agrify’s shares of common stock,” Agrify said in a news release after financial markets closed Friday.
The cannabis ancillary business said it will request a hearing, which will “stay any suspension or delisting action,” then file to extend the stay.
“However, there can be no assurance that the panel will grant Agrify an additional extension, or that the panel will grant Agrify’s request for an extended stay, or that Agrify will be able to regain compliance by the end of any additional extension period,” Agrify said.
Agrify was found delinquent on filing two 10-Q documents and a 10-K.
The company said it plans to complete the reports.
Agrify said it did file amended 10-Q forms with restated financials on Oct. 2 but noted it “was unable to complete and file the delinquent reports by their respective due dates.”
The challenge to the company’s Nasdaq listing (AGFY) comes not long after the company resolved another obstacle to keeping its spot on the exchange.
Agrify consolidated its shares on a 20-to-1 basis in early July after falling afoul of Nasdaq’s minimum share-price requirement.
The company is now based in Troy, Michigan, after moving its corporate headquarters from Billerica, Massachusetts, on Sept. 30.