Business Context and Reporting Period
Greenlane Holdings, Inc. filed a Form 8-K dated December 13, 2022, reporting a Nasdaq continued-listing deficiency concerning its Class A common stock, traded under the symbol GNLN.
Key Financial Metrics and Liquidity
The filing does not provide revenue, profit, cash flow, margins, debt, liquidity, or other operating and financial metrics.
Material Change Versus Prior Period
On December 13, 2022, Nasdaq notified the Company that the closing bid price of its Class A common stock had remained below the required minimum of $1.00 per share for 30 consecutive business days. The deficiency letter had no immediate effect on the listing, and the stock continued trading on the Nasdaq Global Market.
Outlook, Contingencies, and Unusual Items
- The Company was given until June 12, 2023, to regain compliance with Nasdaq Listing Rule 5550(a)(2).
- Compliance could be regained if the stock closed at or above $1.00 per share for at least 10 consecutive business days before the deadline.
- If the Company pursued a reverse stock split, it would have to complete the split no later than 10 business days before June 12, 2023.
- The Company could be eligible for a second 180-day compliance period if it met Nasdaq Capital Market requirements, including the market value of publicly held shares and other initial listing standards, and notified Nasdaq of its intent to cure the deficiency.
- The Company stated that it intended to monitor the stock price and consider available options to regain compliance.
- Failure to regain compliance could result in further Nasdaq action, including potential delisting; the filing does not state that delisting had occurred.
Important Facts for Investors to Verify
- Whether GNLN’s closing bid price subsequently reached $1.00 for the required consecutive trading days.
- Whether the Company implemented a reverse stock split or another remedial action.
- Whether Nasdaq granted a second compliance period or issued any delisting determination.
- The Company’s market value of publicly held shares and other Nasdaq listing qualifications.