Filing Overview
Registrant: Flora Growth Corp., not Zerostack Corp. as indicated in the request metadata. This Form 6-K was filed July 14, 2022, for the month of July 2022, and reports a Nasdaq listing deficiency notice received July 8, 2022.
Business Context and Reporting Period
Flora Growth Corp. is a foreign private issuer filing under Form 20-F. The filing concerns the continued listing status of its common shares on The Nasdaq Capital Market.
Financial Metrics and Liquidity
The filing does not provide revenue, profit, cash flow, margins, debt, liquidity, or other financial operating metrics.
Material Change and Listing Deficiency
- Nasdaq determined that the Company did not satisfy Listing Rule 5550(a)(2), which requires a minimum closing bid price of $1.00 per share.
- The deficiency was based on the common shares closing below $1.00 for 30 consecutive business days.
- The Company received a 180-calendar-day grace period, ending January 4, 2023, to regain compliance.
- Compliance would be restored if the shares closed at or above $1.00 for at least 10 consecutive business days during the grace period.
- The Company may be eligible for an additional 180-day grace period if it satisfies Nasdaq’s market value of publicly held shares and other applicable initial-listing requirements and provides written notice of its intent to cure the deficiency.
Outlook, Risks, and Unusual Items
- If the deficiency is not cured, and the Company is not eligible for an additional grace period, Nasdaq staff may issue notice that the securities are subject to delisting.
- Nasdaq.com and NasdaqTrader.com were expected to display an indicator regarding the noncompliance, and the Company was to be added to Nasdaq’s published list of non-compliant companies within five business days of the notice letter.
- The filing does not state a specific remediation plan, reverse-split proposal, or other corporate action to restore the share price.
Key Facts to Verify
- Whether Flora Growth Corp. regained compliance by January 4, 2023 or received an additional compliance period.
- Whether Nasdaq ultimately initiated or completed delisting proceedings.
- Whether the Company implemented a reverse stock split or other measure affecting its bid price.
- The Company’s financial condition and liquidity, which are not addressed in this Form 6-K.