Agrify Corp. (NASDAQ:AGFY) recently received a letter from the NASDAQ’s Listing Qualifications Department for not filing its first-quarter results on time.
While no immediate action will be taken, Agrify faces the risk of being delisted if compliance is not regained.
This warning follows a previous one earlier this year when the company failed to file its full-year financial results.
Agrify attributed the delay to accounting errors in three previously issued reports.
These errors are a challenge faced by many publicly traded cannabis companies in recent years, per MJ Biz Daily.
In order to meet the requirements, Agrify needs to submit a plan to the NASDAQ by June 20.
“If Nasdaq accepts the Company’s plan, then Nasdaq may grant the Company up to 180 days from the prescribed due date for filing Form 10-K and Form 10-Q to regain compliance. If Nasdaq does not accept the Company’s plan, then the Company will have the opportunity to appeal that decision to a Nasdaq Hearings Panel,” per a press release.
“The Company is working diligently and expects to file its Form 10-Q within the prescribed period, which would eliminate the need for the Company to submit a formal plan to regain compliance.”
Price action: On Wednesday afternoon, AGFY shares were trading 10.63% lower at $0.1875 per share.
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Photo: Courtesy Of m. On Unsplash
