Agrify Corporation, a pioneering provider of cutting-edge cultivation and extraction solutions for the cannabis industry, revealed on Friday that it has been notified by The Nasdaq Stock Market LLC’s Listing Qualifications Department of a potential delisting. This action has been initiated due to Agrify’s non-compliance with Nasdaq Listing Rule 5250(c)(1), which mandates timely filing of all necessary periodic financial reports with the Securities and Exchange Commission. The notification, termed as the “Staff Determination,” does not immediately impact trading or the delisting of Agrify’s common stock shares. Nevertheless, the company witnessed a decline in its stock value subsequent to the announcement.
At the time of this publication, Agrify Corp stock (AGFY) has witnessed a decline.
Agrify Corp
Current Price: $1.73
Change : -0.69
Change (%): (-28.51%)
Volume: 103.1K
Source: Tomorrow Events Market Data
Agrify has expressed its intent to promptly request a hearing before a Nasdaq Hearings Panel. This hearing request will automatically defer any suspension or delisting actions for an additional 15 calendar days post the date of the request. It is worth noting that Nasdaq maintains a procedure for requesting an extension of this stay through the hearing date, as well as beyond any extension period granted by the Panel post the hearing. In conjunction with the hearing request, Agrify will also seek an extension of the stay through the hearing itself and any further extension period provided by the Panel post the hearing. The Nasdaq Listing Rules empower the Panel to grant such an extension period, but there is no guarantee of its approval. The outcome remains uncertain regarding whether Agrify will regain compliance by the conclusion of any additional extension period.
The Staff Determination was issued due to Agrify’s failure to submit its Annual Report on Form 10-K for the fiscal year ending on December 31, 2022, as well as the Quarterly Reports on Form 10-Q for the fiscal quarters concluding on March 31, 2023, and June 30, 2023.
As previously disclosed in the Current Report on Form 8-K filed by Agrify on April 17, 2023, the company’s audit committee determined that, owing to accounting errors pertaining to previously issued warrants, it was imperative to restate Agrify’s previously issued unaudited condensed consolidated financial statements for the fiscal periods concluded on March 31, 2022, June 30, 2022, and September 30, 2022, in amended quarterly reports for the affected periods. Agrify successfully filed amended Forms 10-Q on October 2, 2023, complete with the requisite restated financial statements. Nonetheless, due to the extensive nature of the process, Agrify was unable to meet the filing deadlines for the Delinquent Reports.
Nasdaq had granted Agrify a grace period of 180 calendar days from the specified due date of the Second Quarter Form 10-Q, or until October 16, 2023 (referred to as the “Extension Deadline”), to submit the Delinquent Reports and reestablish compliance with the Listing Rule. Agrify had previously communicated the reasons behind the delay in filing each of the Delinquent Reports through Notifications of Late Filing on Form 12b-25, submitted with the SEC on March 31, 2023, May 15, 2023, and August 21, 2023, respectively.
Agrify has conveyed its commitment to finalize the Delinquent Reports, subsequent to which the financial statements contained therein will undergo scrutiny by Agrify’s independent registered public accounting firm. Post the completion of the audit or review, as applicable, Agrify intends to submit the Delinquent Reports.
In the face of potential Nasdaq delisting, Agrify is steadfast in its efforts to regain compliance and secure its position in the market. However, it remains uncertain whether Agrify will be able to meet the deadline for filing these reports within the extension period granted by the Panel, should it be granted at all.
