Business Context and Reporting Period
This Form 6-K filing by Farmmi, Inc. (FAMI) is dated October 20, 2020, covering the month of October 2020. The report addresses the Company's status regarding its listing on The NASDAQ Capital Market.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on regulatory compliance regarding stock listing requirements.
Material Changes and Listing Status
- Compliance Extension: On October 19, 2020, NASDAQ granted the Company an additional 180 calendar days (until April 13, 2021) to regain compliance with the $1.00 per share minimum bid price requirement.
- Previous Deficiency: The Company failed to meet the bid price requirement by the initial deadline of October 15, 2020, following a tolling period due to extraordinary market conditions.
- Current Trading Status: The Company's ordinary shares continue to trade on The NASDAQ Capital Market under the symbol "FAMI" despite the non-compliance.
Outlook, Risks, and Management Commentary
- Remediation Plan: Management intends to monitor the closing bid price and may consider implementing a reverse stock split if necessary to cure the deficiency.
- Compliance Criteria: To regain compliance, the bid price must close at or above $1.00 per share for a minimum of ten consecutive business days during the new compliance period.
- Risks: There is no assurance that the Company will be able to regain compliance with the Minimum Bid Price Rule or maintain other listing requirements necessary to avoid delisting.
Investor Verification Checklist
- Verify the current closing bid price of FAMI shares relative to the $1.00 threshold.
- Monitor for any announcements regarding the implementation of a reverse stock split.
- Track the Company's progress toward achieving ten consecutive days of compliance before the April 13, 2021 deadline.
- Review subsequent filings for updates on the Market Value of Publicly Held Shares (MVPHS) requirement.