Hexo Corp. says the Nasdaq Stock Market LLC has informed the cannabis company that it is not in compliance with minimum bid price requirements.
Gatineau, Quebec-based Hexo, which has a manufacturing facility in Belleville, became non-compliant with the requirement when its closing bid price for common shares listed on the Nasdaq dropped below $1 U.S. for 30 consecutive trading days.
The company’s shares closed Friday at 50 cents U.S. a share on the Nasdaq, down from a peak of about $31 U.S. a share in April 2019.
Hexo says the Nasdaq notification has no immediate effect on its listing, but gives the company until July 25 to have its shares close at or above $1 U.S. per share for a minimum of 10 days to become compliant again.
If the shares don’t close at or above $1 U.S. by that date, the company may be eligible to receive another 180-day window to work toward compliance, but may also be subject to a delisting.
Hexo, which also has a Toronto Stock Exchange listing, parted ways with co-founder Sebastien St-Louis last year and quickly embarked on a new strategic plan to reduce expenses by about 30% by the end of fiscal 2023.
