Edible Garden AG Incorporated, an agricultural production company, has received a delisting notice from Nasdaq due to the failure to maintain the minimum required bid price. The notice, received on Monday, stated that Edible Garden's common stock had not met the $1 minimum bid price for 30 consecutive business days, as per Nasdaq Listing Rule 5550(a)(2).
The company, which is not eligible for a compliance period due to previous reverse stock splits, plans to appeal the decision. Trading of Edible Garden's securities on Nasdaq is set to be suspended on October 30, 2024, unless the company successfully requests a hearing before the Nasdaq Hearings Panel by October 28, 2024. The appeal would delay the suspension until the Panel's further decision.
While the appeal is pending, Edible Garden's common stock and warrants will continue to trade on Nasdaq under the symbols "EDBL" and "EDBLW," respectively. However, there is no guarantee that the Panel will allow additional time to regain compliance or that the company will meet the continued listing criteria.
This development follows a series of reverse stock splits by Edible Garden with a cumulative ratio exceeding 250 to 1 in the past two years. The company has publicly stated its intention to address the issue and request a hearing but has not assured investors of a favorable outcome.
The information in this article is based on a press release statement from Edible Garden AG Incorporated.
In other recent news, Edible Garden AG reported a robust Q2 in 2024, marked by a significant increase in gross profit and an expansion of distribution channels, despite a net loss for the quarter. The company's gross profit increased by 157%, driven by a 61% increase in cut herbs and a 30% increase in vitamins and supplements.
However, the company reported a net loss of $1.21 per share for Q2. Edible Garden AG also announced a new partnership with Green’s Natural Foods and The Extra Supermarket in New York and New Jersey, further expanding its distribution in the Northeastern United States.
In other developments, the company's shareholders approved an amendment to its equity incentive plan, increasing the shares reserved for issuance and extending the plan's term. This strategic move aims at incentivizing and retaining key employees.
Furthermore, the company elected four directors to serve a one-year term and ratified Marcum LLP as its independent registered public accounting firm for the fiscal year ending December 31, 2024. These are the recent developments in Edible Garden AG's business operations.
InvestingPro Insights
The delisting notice received by Edible Garden AG Incorporated reflects the company's ongoing financial challenges, as highlighted by several InvestingPro metrics and tips. According to InvestingPro data, Edible Garden's market capitalization has shrunk to just $1.58 million, with its stock price plummeting to $0.21, a mere 1.6% of its 52-week high. This aligns with the InvestingPro Tip that the stock "has fared poorly over the last month," with a staggering 58.07% decline in the past month alone.
The company's financial health appears precarious, with InvestingPro Tips indicating that Edible Garden "operates with a significant debt burden" and "may have trouble making interest payments on debt." This is further compounded by the fact that the company is "quickly burning through cash" and its "short term obligations exceed liquid assets." These factors likely contribute to the stock's high volatility, another characteristic noted by InvestingPro.
Despite revenue growth of 18.14% over the last twelve months, Edible Garden's operating income margin stands at a concerning -61.5%, suggesting significant operational inefficiencies. The InvestingPro Tip that the company "suffers from weak gross profit margins" is reflected in the 12.75% gross profit margin for the same period.
For investors seeking a more comprehensive analysis, InvestingPro offers 17 additional tips for Edible Garden, providing a deeper understanding of the company's financial position and market performance.
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