Marijuana firm Village Farms regains Nasdaq compliance; Weedmaps loses it

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Marijuana and produce company Village Farms International is back in compliance with the listing rules of the Nasdaq stock exchange.

Meanwhile, Weedmaps parent company WM Technology also on Tuesday reported receiving a notice that the company is out of compliance with Nasdaq rules.

The Nasdaq requires listed companies to maintain a minimum bid price of $1 per share.

Shares of Vancouver, British Columbia-based Village Farms (VFF) passed that threshold in March.

The Nasdaq issued its low-share-price warning to Village Farms in April 2023 and gave the company an extension in October to meet it.

Cannabis industry ancillary company WM Technology, parent of Weedmaps, announced receiving “an expected delinquency notification letter” from the Nasdaq after not filing its annual 10-K report on time.

“This notification has no immediate effect on the listing of the company’s securities on Nasdaq,” the Irvine, California-based company said in a release.

WM Technology said the delay in filing its 10-K “is due to a recent change in the company’s executive finance leadership” as well as “the company’s need to complete additional financial-closing procedures associated with one or more material weaknesses in internal control over financial reporting.”

The company has 60 days to give the Nasdaq a compliance plan, and the stock exchange may grant WM Technology until the end of September to comply.

“The company will file the Form 10-K as soon as practicable,” said WM Technology.

The company’s shares trade as MAPS on the Nasdaq.

Nasdaq’s $1 per share minimum bid-price requirement has led to a wave of share consolidation among Nasdaq-listed marijuana and ancillary companies.

A recent example is Canadian producer Aurora Cannabis, which consolidated its shares on a 10-to-one basis in February.

Cannabis marketing and loyalty company Springbig Holdings delisted from the Nasdaq in September 2023.