Cannabis tech company Agrify Corporation said it will remain listed on the Nasdaq for now to meet the exchange's requirements for minimum shareholder equity.
Wednesday's listing news follows several developments that Agrify reported last week, including:
The maximum number of shares that can be issued will be increased from 10 million shares to 35 million shares. The new lender, CP Acquisitions (owned by AgriFi CEO and Chairman of the Board Raymond Chan and board member Yi Tseng Jenny Chan), will consolidate the debt held by AgriFi into a single convertible note and $3.9 million of the debt will be converted into equity at a premium. Previous secured lenders have exercised stock options in exchange for shares, “resulting in a significant reduction in the number of outstanding stock options.”
Agrify said last week that the measures are “expected to reduce debt on the company's balance sheet” in order to comply with Nasdaq rules.
The Nasdaq Capital Market's equity standards rules require a publicly traded company's principal equity securities to have at least $2.5 million in stockholders' equity.
The company announced Wednesday that the Nasdaq committee had a hearing on Jan. 11 and was granted an extension until April 15 to comply with the rules.
“In addition, (AgriFi) continues to resolve and settle various previous legal and trade debts in order to reduce outstanding debt and improve the company's capital position,” the company said in a statement. mentioned in.
Troy, Michigan-based AgriFi has faced problems in the past with complying with Nasdaq listing requirements and received warnings for late filing of financial reports.
Agrify also consolidated its shares in 2023 to meet stock exchange minimum bid price requirements.
The equity warning issued Dec. 1 is the only remaining warning for Agrify, which is on Nasdaq's non-compliance list.
Chan said the company is “committed to returning the business to profitability in the shortest possible time.”
The company's stock trades as AGFY on the Nasdaq, and its stock price is once again below $1 per share.
