Business Context and Reporting Period
Medalist Diversified REIT, Inc. (MDRR) filed a Form 8-K on July 11, 2022. The Company is incorporated in Maryland and its common stock and 8.0% Series A Cumulative Redeemable Preferred Stock (MDRRP) are listed on the Nasdaq Capital Market.
Key Financial Metrics
This filing is a current report regarding listing status and does not contain financial statements. Consequently, data regarding revenue, profit, cash flow, margins, debt, and liquidity are not provided in this document.
Material Changes
The Company received a deficiency letter from Nasdaq notifying it that the closing bid price of its common stock has been below the minimum $1.00 per share requirement for the last 30 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2).
Outlook, Risks, and Management Commentary
- Compliance Period: The Company has 180 calendar days, until January 9, 2023, to regain compliance with the Minimum Bid Price Requirement.
- Compliance Criteria: Compliance is achieved if the bid price closes at $1.00 or more for a minimum of 10 consecutive business days before the deadline.
- Future Options: If compliance is not met by January 9, 2023, the Company may be afforded a second 180-day period. Management may consider a reverse stock split to regain compliance.
- Risks: There is no assurance the Company will regain compliance or remain in compliance with other Nasdaq Listing Rules. Failure to comply could result in delisting.
Investor Verification Checklist
- Verify the current closing bid price of MDRR common stock to assess proximity to the $1.00 threshold.
- Monitor the Company's announcements regarding the potential implementation of a reverse stock split.
- Review the Company's financial health in recent 10-Q or 10-K filings to understand the underlying causes of the stock price decline.
- Confirm the status of the preferred stock (MDRRP) listing, as this filing specifically addresses the common stock deficiency.