SAN DIEGO, CA - Hempacco Co., Inc., a cigarette manufacturing company, has received a notice from the Nasdaq Stock Market indicating non-compliance with the minimum bid price requirement for continued listing on the Nasdaq Capital Market.
The notice, dated July 16, 2024, stated that Hempacco's common stock had not maintained the necessary $1.00 minimum bid per share over the previous 30 consecutive business days.
The company, which trades under the ticker NASDAQ:HPCO, now has until January 13, 2025, to regain compliance with the bid price rule. Compliance can be achieved if the bid price of Hempacco’s common stock closes at or above $1.00 per share for at least ten consecutive business days before the deadline.
Hempacco may be granted an additional 180-day period to meet the requirement if it meets other market value and listing standards, and if it notifies Nasdaq of its intent to remedy the deficiency, potentially through a reverse stock split.
The current situation does not immediately affect the listing of Hempacco’s common stock and does not impact its business operations or SEC reporting requirements. Still, the company acknowledges that a potential delisting could have adverse effects, such as reduced liquidity and market price of its common stock, diminished investor base, and restricted access to public capital markets, which could hinder its ability to raise equity financing and offer equity incentives to employees.
The information provided here is based on a press release statement and should be considered forward-looking, subject to risks and uncertainties. Hempacco has expressed its intention to monitor its stock's closing bid price closely and is exploring options to regain compliance with Nasdaq's minimum bid price requirement.
In other recent news, Hempacco Co, Inc. has announced the acquisition of assets from Simtech LLC, MJAC Vending LLC, and Bear Air, LLC, a strategic move to expand its vending machine operations and product offerings.
The company is also facing potential Nasdaq delisting due to the delayed filing of its annual and quarterly reports. In addition to this, Hempacco and Illumination Brands have proposed a merger of U.S. operations, aiming to form a vertically integrated beverage and snack brand incubator named Illumination Brands.
These recent developments could significantly impact Hempacco's operations and its standing on the Nasdaq exchange. While the company has until mid-June 2024 to present plans to regain compliance, the proposed merger is still subject to approval.
The acquisition of Simtech and others will enable Hempacco to manage at least 100 vending machine kiosks selling their celebrity-branded and Disney-branded products. David Simchon, the CEO of Simtech LLC, is set to become the CEO of Celebrity Vending following the deal's closure.
These developments are part of Hempacco's broader goal to disrupt the nearly $1 trillion tobacco industry with alternative products. The company's diverse operations include the research and development of D9 and mushroom beverages, manufacturing of vapes, hemp smokables, and rolling paper, as well as the production of cosmetics, nutraceutical products, and branded gummies.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.