Companies go public to improve their financing options. This exposure represents an unbeatable opportunity to attract investment, and Aurora Cannabis is well aware of this. However, it seems that 2023 is not being its best year, as the Canadian firm that opens the world to marijuana announced late last week the receipt of a notification letter from The Nasdaq Stock Market LLC with not-so-positive news.
According to the letter, the cannabis company did not comply with Nasdaq Listing Rule 5450(a)(1) as the offering price of listed securities. This is because Aurora closed at less than $1 per share for the last 30 consecutive business days from February 8, 2023, through March 23, 2023.
In accordance with the listing rules of this exchange, Aurora has a period expiring on September 20, 2023, to regain compliance with the Minimum Bid Price Requirement. In simple terms, the company has 180 calendar days from the date of the Letter of Notification to get back on its feet and avoid being delisted in its entirety.
If, during that period, the offering price of the company’s common stock closes at or above $1 per share, Nasdaq is expected to provide written notice that the firm has succeeded in meeting the Minimum Bid Price Requirement. It’s important to note that this value per share must be maintained for at least ten consecutive business days; otherwise, it would not apply. In addition, Nasdaq reserves the right to extend the 10-business day period in certain circumstances.
Daily trading should not be affected by this news and does not result in the delisting of the company’s shares, at least at this time. Aurora is also listed on the Toronto Stock Exchange, but the recent letter of notification shouldn’t affect the company’s compliance status with the listing on that exchange. Aurora said it is committed to considering all available options to resolve the deficiency with the intention of returning to compliance with Nasdaq requirements.