HEXO Corp. (NASDAQ:HEXO) (TSX:HEXO) received an extension of 180 calendar days from the Nasdaq Stock Market LLC (NASDAQ:NDAQ) to regain compliance with the Nasdaq’s minimum $1.00 bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2) for continued listing on the Nasdaq Capital Market, following the expiration of the initial 180 calendar days period to regain compliance on July 25, 2022.
The Nasdaq determination is based on the company meeting the continued listing requirement for market value of publicly held shares and all other applicable requirements for initial listing on the Nasdaq Capital Market with the exception of the bid price requirement, and the company’s written notice of its intention to cure the deficiency during the second compliance period by effecting a share consolidation, if necessary.
“This extended grace period will provide the runway we need to position HEXO for long-term success," stated Charlie Bowman, president and CEO of HEXO. "Our listing on the Nasdaq is a critical component of our profitable growth strategy, providing access to a broad investor base and expanded awareness within the U.S. market.”
As a result of the extension, the company now has until January 23, 2023 to regain compliance with the bid price requirement. If at any time before January 23, 2023, the bid price of the company’s common shares closes at or above $1.00 per share for a minimum of 10 consecutive business days, Nasdaq will provide written notification to the company that it has achieved compliance with the bid price requirement. If the company chooses to implement a share consolidation to regain compliance, it must complete the consolidation no later than ten business days prior to the expiration of the additional 180 calendar day period in order to timely regain compliance.
If the company does not regain compliance with the bid price requirement by January 23, 2023, Nasdaq will provide written notification to the company that its shares will be subject to delisting. At such time, the company may appeal the delisting determination to a Nasdaq hearings panel. The company would remain listed pending the panel’s decision. There can be no assurance that, if the company does appeal a subsequent delisting determination, such appeal would be successful.
This current notification from Nasdaq has no immediate effect on the listing or trading of the company’s shares, which will continue to trade on the Nasdaq Capital Market under the symbol “HEXO”. The company is also listed on the Toronto Stock Exchange and the notification letter does not affect the company’s compliance status with such listing.
Photo by Thiago Patriota on Unsplash
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