Hexo Receives Notification From NASDAQ On Failing To Meet Minimum Bid Requirement

Marijuana operator HEXO Corp HEXO HEXO, confirmed that it received notification from the Nasdaq that it is not in compliance with the minimum bid price requirement in Nasdaq Listing Rule 5500(a)(2) for continued listing. The closing bid price for the company’s common shares listed on Nasdaq was below $1.00 for 30 consecutive trading days, which is against Nasdaq listing rules.

The notification has no immediate effect on the listing of the company’s common shares on the Nasdaq Capital Market. Under Nasdaq Listing Rule 5810(c)(3)(A), Hexo has a period of 180 calendar days from the date of Notification, being until July 25, 2022, to regain compliance, during which time the common shares will continue to trade on the Nasdaq Capital Market.

If at any time before July 25, 2022, the bid price of the common shares closes at or above $1.00 per share for a minimum of 10 consecutive business days, the company will regain compliance with the minimum bid requirement. In the event the company does not regain compliance with the minimum bid requirement by July 25, 2022, the company may be eligible for an additional period of 180 calendar days to regain compliance or may be subject to delisting of the common shares from the Nasdaq Capital Market.

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Price Action

Hexo shares were trading 1.15% lower at 49 cents per share during Monday’s pre-market session.

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