Village Farms International, Inc. (NASDAQ: VFF), has been informed by The Nasdaq Stock Market LLC that it does not comply with the minimum bid price requirement. As a result, the company’s common shares have traded below the mandated US$1.00 per share since March 7, 2023.
While the notification does not immediately impact the company’s listing, Village Farms has been given a 180-day compliance period until October 17, 2023, to resolve the issue. The company’s shares will continue to trade on the Nasdaq Capital Market during this period. To regain compliance, Village Farms’ share price must close at or above US$1.00 for at least ten consecutive business days. Nasdaq is expected to confirm the company’s regained compliance status if achieved.
Should Village Farms fail to regain compliance by the October deadline, it may be granted an additional 180-day extension or face potential delisting from the Nasdaq Capital Market. The company would have the option to appeal such a determination to a Nasdaq Hearings Panel.
Village Farms International’s recent notification adds to the increasing number of Controlled Environment Agriculture (CEA) companies facing potential delisting or receiving similar notices. These companies, including Edible Garden, Kalera (filed for Chapter 11 bankruptcy), Agrify, CEA Industries, Local Bounti (Stock has been trading under $1.00 for nearly 30 days), and AppHarvest (Stock has been trading under $1.00 since mid-February), have all encountered difficulties maintaining their share prices above the minimum bid requirement. This trend underscores the mounting challenges and uncertainties within the CEA sector as companies struggle to demonstrate consistent profitability and growth in the face of an evolving market landscape.
Image provided by VFF International
