News provided by mjbizdaily
International medical cannabis company Akanda Corp. says its shares could be delisted from the Nasdaq Capital Market after the stock exchange gave notice that the bid price of Akanda’s shares had fallen below its required minimum.
Akanda is monitoring its share price and might “consider implementing available options, including, but not limited to, implementing a reverse stock split of its common shares to regain compliance,” the company said in a late Monday news release.
The Nasdaq requires a minimum bid price of $1 per share to maintain listings.
Akanda shares closed at $0.43 on Monday.
The London-based company, which has operations in Africa and Europe, has until late March 2023 to comply with Nasdaq requirements, but it might be eligible for an extension after that deadline.
If Akanda does consolidate its shares, it won’t be the first Nasdaq-listed cannabis company to do so.
Several marijuana producers have faced challenges maintaining their share values at Nasdaq’s minimum required bid price.
Canadian companies Sundial Growers and Neptune Wellness Solutions were granted extensions to meet the minimum-bid-price requirement earlier this year.
Neptune subsequently consolidated its shares in June; Sundial consolidated in July.
Another Canadian producer, Hexo Corp., has floated the possibility of a share consolidation to retain its Nasdaq listing.
Hexo was granted a 180-day extension by the stock exchange in late July.
Akanda went public on the Nasdaq exchange in March.
The company’s shares trade as AKAN.
H/T: mjbizdaily.com
