Business Context and Reporting Period
This Form 6-K filing by Farmmi, Inc. covers the month of June 2021, specifically dated June 4, 2021. 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 strictly a disclosure of a listing deficiency and does not contain financial performance data.
Material Changes
The primary material event is the notification from Nasdaq that the company's ordinary shares traded below the minimum closing bid price of $1.00 for 30 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2). This deficiency does not result in immediate delisting, and shares continue to trade under the symbol "FAMI."
Guidance, Outlook, and Risks
- Compliance Period: Farmmi has an initial 180-calendar-day compliance period ending November 30, 2021, 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.
- Contingencies: If compliance is not met by November 30, 2021, the company may be eligible for an additional 180-day grace period. Qualification requires meeting the market value of publicly held shares and other initial listing standards.
- Reverse Stock Split: The company may effect a reverse stock split to cure the deficiency, which must be completed no later than ten business days prior to the expiration of the second compliance period if utilized.
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 or other capital structure changes.
- Track the company's status as the November 30, 2021, deadline approaches to determine if a second compliance period is necessary.
- Review the press release filed as Exhibit 99.1 for additional management commentary on the bid price issue.