The Nasdaq stock exchange has warned another marijuana company that it could be delisted if it doesn’t comply with the rules.
Agrify Corp., a Massachusetts-based cannabis cultivation and extraction solutions company, received a notice of noncompliance from Nasdaq because the company hasn’t filed its 10-K form with its full-year financial results to the U.S. Securities Exchange Commission on time.
The company, which trades on the Nasdaq as AGFY, could be delisted from the exchange if it fails to regain compliance, according to a news release.
Agrify has until June 20 to submit a plan as to how it will regain compliance.
If the Nasdaq accepts the plan, Agrify will have up to 180 days to file the 10-K form.
If Nasdaq rejects the plan, the company can appeal the decision.
No action will be taken at this time.
Agrify said it is restating financial results for the first, second and third quarters of 2022 in an 8-K form filed April 17.
“Given the scope of the process for preparing the amended quarterly reports, Agrify was unable to complete and file the Form 10-K for the fiscal year ended December 31, 2022 by the required due date of March 31, 2023,” the company said in its release.
A number of cannabis companies have restated financial results in recent years.
Just last week, New York-based multistate marijuana operator Curaleaf Holdings announced that its revenue for 2022 and 2021 would be adjusted slightly.
That move came after the company reviewed its results as part of a transition from International Financial Reporting Standards (IFRS) to U.S. generally accepted accounting principles (GAAP). (Full Story)