E-commerce platform Leafly Holdings is the latest publicly traded company in the marijuana industry to consolidate its shares to keep its listing on the Nasdaq stock exchange.
The share consolidation, effective Tuesday, combined 20 Leafly shares into one.
“The primary goal of the reverse stock split is to bring the company into compliance with the minimum bid price requirement for maintaining the listing of its common stock on Nasdaq,” Seattle-based Leafly said in a news release.
“There is no guarantee the company will meet the minimum bid price requirement.”
The Nasdaq requires listed companies to maintain a bid price of at least $1 per share, a requirement that has become challenging for a number of cannabis companies and ancillary firms listing on the exchange.
A share consolidation, sometimes called a reverse share split, is one way for companies to regain compliance with Nasdaq’s rules.
Canadian cultivator Organigram Holdings, international grower Clever Leaves Holdings and ancillary firm Agrify Corp. have all chosen that path in recent months.
Another option to regain Nasdaq compliance is to move to a different exchange.
That’s the choice recently announced by Florida-based marijuana marketing and loyalty software company Springbig Holdings, which departed the Nasdaq to list on over-the-counter markets at the beginning of September.
H/T: mjbizdaily.com
