Canadian cannabis producer Hexo Corp. (HEXO) says the Nasdaq exchange has informed it that it is not in compliance with minimum bid price requirements and at risk of having its stock delisted.
Gatineau, Quebec-based Hexo became non-compliant with the requirement when its closing bid price for common shares listed on the Nasdaq dropped below $1 U.S. for 30 consecutive trading days.
Hexo’s shares closed yesterday (January 31) at 56 cents U.S. a share on the Nasdaq, down from a peak of about $31 U.S. a share in April 2019.
Hexo says the Nasdaq notification has no immediate impact on its listing, but the company has been given until July 25 to have its shares close at or above $1 U.S. per share for a minimum of 10 days to become compliant again.
If Hexo stock does not close at or above $1 U.S. by that date, the company may be eligible to receive another 180-day window to work toward compliance, but could also be subject to a delisting from the Nasdaq exchange.
Hexo, which also has a Toronto Stock Exchange listing, parted ways with co-founder Sebastien St-Louis last year and undertook a new strategic plan to reduce its expenses by 30%.
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