LISHUI, China - Farmmi, Inc. (NASDAQ: FAMI), a supplier of agricultural products, announced Monday that it has received a notification from Nasdaq regarding non-compliance with the exchange's minimum bid price requirement. The notice, dated April 22, 2024, indicates that Farmmi's share price has been below the $1.00 minimum threshold for 32 consecutive business days.
The Nasdaq Listing Rule 5550(a)(2) stipulates that listed companies must maintain a minimum bid price of $1.00 per share. Despite this setback, the trading of Farmmi's ordinary shares will continue on the Nasdaq without interruption under the ticker "FAMI."
Farmmi has been granted a 180-day compliance period, ending on October 21, 2024, to meet the minimum bid price criterion. To regain compliance, the company's shares must close at $1.00 or higher for at least 10 consecutive business days within this period. If Farmmi fails to achieve compliance by the deadline, it may be considered for an additional grace period of 180 days.
The company, established in 1998, specializes in the supply, processing, and retail of edible mushrooms, such as Shiitake and Mu Er, and other agricultural commodities, leveraging both online and offline sales channels.
The forward-looking statements included in the company's press release indicate Farmmi's optimism about future growth prospects. However, these statements are subject to various risks and uncertainties, including the impact of the Covid-19 pandemic on consumer spending and the company's ability to raise capital and manage growth.
Investors are cautioned that such forward-looking statements are not guarantees of future performance and involve risks that could cause actual results to differ materially from those anticipated by the company.
This news is based on a press release statement from Farmmi, Inc., and it is essential for investors to note that no offer to purchase or sell securities is being made through this announcement.
InvestingPro Insights
In light of Farmmi, Inc.'s recent notification from Nasdaq regarding its share price, a closer look at the company's financial health through InvestingPro metrics and tips may offer investors additional context.
Despite the challenges with its stock price, Farmmi holds more cash than debt on its balance sheet, which is a positive sign of financial stability. Moreover, the company is trading at a low Price / Book multiple of 0.03 as of the last twelve months ending Q4 2023, suggesting that the stock may be undervalued relative to its book value.
On the flip side, Farmmi's cash burn rate is a concern, as indicated by an InvestingPro Tip that highlights the company's quick cash consumption. This could be a factor for investors to consider, especially in the context of the company's need to maintain liquidity and fund operations. Additionally, the company's gross profit margin stands at 3.88%, which suggests that Farmmi is experiencing weak gross profit margins, potentially impacting its overall profitability.
From a valuation standpoint, Farmmi's P/E Ratio (Adjusted) of 2.08 and a Market Cap of 5.42M USD as of Q4 2023 are important metrics for investors to note. These figures, coupled with the company's revenue growth of 11.24% during the same period, provide a mixed picture, indicating that while the company is growing its revenue, its valuation remains low, which could be a point of interest for value investors.
For those interested in a deeper analysis, there are over 15 additional InvestingPro Tips available at InvestingPro. These tips can offer further insights into Farmmi's financial health and stock performance. To access these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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