Hexo Corp. says the Nasdaq Stock Market LLC has informed the cannabis company that it is not in compliance with minimum bid price requirements.
The Gatineau-based pot producer became non-compliant with the requirement when its closing bid price for common shares listed on the Nasdaq dropped below US$1 for 30 consecutive trading days.
The company’s shares closed Friday at 50 cents US a share on the Nasdaq, down from a peak of about US$31 a share in April 2019.
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Hexo says the Nasdaq notification has no immediate effect on its listing, but gives the company until July 25 to have its shares close at or above US$1 per share for a minimum of 10 days to become compliant again.
If the shares don’t close at or above US$1 by that date, the company may be eligible to receive another 180-day window to work toward compliance, but may also be subject to a delisting.
Hexo shifted to the Nasdaq from the New York Stock Exchange last summer. The company was forced to consolidate its shares on the NYSE in 2020 after they fell below $1 and no longer met the exchange’s listing standards.
Hexo, which also has a Toronto Stock Exchange listing, parted ways with co-founder Sebastien St-Louis last year and quickly embarked on a new strategic plan to reduce expenses by about 30 per cent by the end of fiscal 2023.
