Seattle-based online cannabis marketplace Leafly Holdings Inc. (Nasdaq: LFLY) has regained compliance with Nasdaq listing rules, averting a delisting from the exchange.
Leafly received notice in late September that it was back in compliance. The notice put an end to a process that began in November of last year when the company first received notice it was out of compliance because its stock hadn't maintained a minimum bid price of $1 per share for 30 consecutive business days.
The company didn't comment on the notice beyond a news release.
Leafly in September enacted a 1-for-20 reverse stock split, meaning every 20 shares were converted to one, more valuable share. The move, which went into effect Sep. 12, means the company now has fewer shares overall, but the value of each remaining share has increased twentyfold. Shareholders left with a fraction of a share after the split had their share total rounded up to the nearest whole number.
Leafly hit Nasdaq's required $1 minimum bid price for 10 consecutive business days on Sep. 25, regaining compliance with the exchange.
After receiving notice in November that it was out of compliance, Leafly had 180 calendar days to meet the Nasdaq's $1 share price requirement for 10 straight business days or face delisting. The company wasn't able to do so but requested a hearing in May with the Nasdaq Hearings Panel to get an additional 180 calendar days to meet that threshold.
Leafly's stockholders approved the reverse stock split at the company's annual meeting in July, and the board approved it in August.
Leafly, founded in 2010, allows consumers to research and shop for cannabis products online, and retailers can boost their cannabis businesses through Leafly's website. Leafly went public in February of last year through a merger with a special purpose acquisition company, and the company rang the opening bell on the Nasdaq on April 20, 2022.
Leafly in March announced plans to lay off about 40 employees, adding to 56 layoffs announced in October of last year. The company generated $10.7 million in revenue during the second quarter, down 11% year over year. Its share price closed up 2.6% at $7.18 on Friday.
