Village Farms Cannabis Co. Faces Nasdaq Compliance Challenge, Here's What Investors Need To Know

Village Farms International, Inc. VFF received notification from the Nasdaq Stock Market LLC citing that it is not in compliance with the minimum bid price requirement – NASDAQ Listing Rule – as the bid price for the company's common shares closed below $1 from Sept. 6, 2024, to Oct. 17, 2024.

The controlled-environment agriculture company has 180 days or until April 16, 2025 to regain compliance.

During the compliance period, Village Farms common shares will continue to trade on the Nasdaq Capital Market.

If the company can successfully increase its stock price above $1.00 for 10 consecutive days, it may regain compliance. Then, if Village Farms does not meet the minimum bid requirement by April 16, 2025, it could qualify for an extra 180-day period to achieve compliance or face delisting from the Nasdaq Capital Market. In this scenario, the company would have the option to appeal the delisting decision to a Nasdaq Hearings Panel.

Read Next: Take Advantage of Village Farms Stock as Cannabis Market Evolves

Background

Village Farms, a key player in the greenhouse produce and cannabis sectors, filed a new contract for president and CEO Michael A. DeGiglio in August, ensuring leadership stability.

In the second quarter, Village Farms' domestic branded recreational sales grew by 7% quarter-over-quarter and 34% year-over-year to CA$41.8 million. The company’s cannabis EBITDA margin also saw an increase, rising by 90 basis points to 11.8%, as highlighted by Benzinga's Nicolás Jose Rodriguez.

According to a June report from Pablo Zuanic of Zuanic & Associates, the strategic positioning of Village Farms in key markets and product categories bolsters its market share and operational metrics, indicating a resilient business model even amidst broader market volatility.

In Canada, the company's subsidiary Pure Sunfarms is building its footprint nationwide, while in the U.S. it present through its wholly-owned Balanced Health Botanicals, a cannabinoid platform and 5.5 million square feet of high-tech CEA facilities in Texas. Internationally, the company's eyes legal cannabis and CBD opportunities in the Asia-Pacific region and Europe.

Read Next:

• Village Farms’ Pure Sunfarms Commences Shipping Cannabis To Israel

VFF Price Action

Village Farms' shares traded 2.0862% lower at $0.9119 per share at the time of writing on Monday.