Business Context and Reporting Period
This Form 6-K filing by Farmmi, Inc. covers the month of October 2022. The report addresses a regulatory notification received from the Nasdaq Capital Market regarding the company's compliance with listing standards.
Key Financial Metrics
The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity. This report is a current report focused on corporate governance and listing status rather than financial performance.
Material Changes
On October 12, 2022, Farmmi, Inc. received a notification from Nasdaq stating that the minimum closing bid price per share for its ordinary shares fell below $1.00 for 30 consecutive business days. Consequently, the company failed to meet the minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2).
Guidance, Outlook, and Risks
- Compliance Period: The company has been granted an initial 180-calendar-day compliance period ending on April 10, 2023, to regain compliance.
- Remediation Criteria: To close the matter, the closing bid price must be at least $1.00 for a minimum of 10 consecutive business days during the compliance period.
- Delisting Risk: If compliance is not achieved by April 10, 2023, the company may be eligible for an additional 180-day grace period, provided it meets other listing standards (excluding bid price) and notifies Nasdaq of its intent to cure the deficiency.
- Reverse Stock Split: If a second compliance period is utilized, the company may need to effect a reverse stock split, which must be completed no later than ten business days prior to the expiration of that period.
- Trading Status: The notification does not result in immediate delisting; shares will continue to trade under the symbol "FAMI."
Investor Verification Checklist
- Verify the current closing bid price of Farmmi, Inc. shares to assess progress toward the $1.00 threshold.
- Monitor for any announcements regarding a reverse stock split prior to the April 10, 2023 deadline.
- Confirm whether the company has met the 10 consecutive business day requirement for price recovery.
- Review subsequent filings for updates on the compliance status or potential delisting proceedings.