Friday night news 2022-11-18 17:24 ET - News Release
Mr. Parimal Rana reports
THE VERY GOOD FOOD COMPANY RECEIVES NOTICE OF DELISTING DETERMINATION FROM NASDAQ; APPEALS DETERMINATION
On Nov. 15, 2022, The Very Good Food Company Inc. received a staff delisting determination from the listing qualifications department of the Nasdaq Stock Market LLC, which notified the company that the Nasdaq listing qualifications department has determined to delist the company's securities from the Nasdaq Capital Market.
Previously, on Jan. 11, 2022, the Nasdaq listing qualifications department notified the company that the bid price of its listed securities had closed at less than $1 (U.S.) per share over the previous 30 consecutive business days and, as a result, did not comply with Nasdaq listing Rule 5450(a)(1). Therefore, in accordance with Nasdaq listing Rule 5810(c)(3)(A), the company was provided 180 calendar days, or until July 11, 2022, to regain compliance. Subsequently, on July 12, 2022, the company was provided an additional 180-calendar-day compliance period, or until Jan. 9, 2023, to demonstrate compliance.
The staff determination was issued because the company's shares had a closing bid price of 10 U.S. cents or less for 10 consecutive trading days during the compliance period, which is contrary to Nasdaq listing Rule 5810(3)(A)(iii) and requires the listing qualifications department to issue a delisting determination.
The company has appealed the staff determination. Since the company has appealed the staff determination, it will not immediately result in the suspension of trading or delisting of the company's securities. An appeal of the staff determination results in a hearing before a Nasdaq hearings panel to present the company's plan to regain compliance with the applicable listing requirements. Under the Nasdaq listing rules, such a request automatically stays the delisting process. Nasdaq has informed the company that hearings are typically scheduled to occur approximately 30 to 45 days after the date of the hearing request. There can be no assurance that the panel will approve the company's plan to regain compliance with the applicable listing requirements.