8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Flora Growth Corp., an Ontario corporation, concerning events occurring on January 5, 2023. The filing was signed and furnished with a related press release on January 6, 2023. The request metadata identifies Zerostack Corp., but the filing identifies Flora Growth Corp. as the registrant.
Key Financial Metrics and Liquidity
The filing does not provide revenue, profit, cash flow, margins, debt, liquidity, or other operating financial metrics.
Material Change Versus the Prior Period
Nasdaq granted Flora an additional 180-calendar-day compliance period after the initial period to cure its failure to satisfy Nasdaq Listing Rule 5550(a)(2), which requires a minimum $1.00 closing bid price.
- New compliance deadline: July 3, 2023.
- The company stated that it intends to cure the deficiency during the additional period, including through a reverse stock split if necessary.
- The shares continued trading on the Nasdaq Capital Market under the symbol FLGC, and the notification had no immediate effect on listing or trading.
Outlook, Risks, Contingencies, and Unusual Items
If Flora’s common shares close at or above $1.00 for at least ten consecutive business days before July 3, 2023, Nasdaq is expected to provide written confirmation of compliance. If a reverse stock split is used, it must be completed no later than ten business days before the additional compliance period expires.
If the company does not regain compliance by July 3, 2023, Nasdaq may issue a delisting notification. Flora could appeal to a Nasdaq Hearings Panel, and its shares would remain listed while the appeal is pending; however, the filing states that there is no assurance the appeal would succeed.
Investor Verification Items
- Verify that the filing relates to Flora Growth Corp. rather than Zerostack Corp.
- Monitor FLGC’s closing bid price and whether the $1.00 requirement is met for ten consecutive business days.
- Determine whether Flora approved or implemented a reverse stock split before the deadline.
- Confirm whether Nasdaq issued a compliance, delisting, or appeal-related determination after July 3, 2023.
- Review subsequent filings for any changes to listing status, capitalization, or shareholder impact.