LISHUI, China - Farmmi, Inc. (NASDAQ: FAMI), a supplier of agricultural products, has received a 180-day extension from NASDAQ to meet the exchange's minimum bid price requirement, the company announced Tuesday. The extension grants Farmmi until April 21, 2025, to elevate its ordinary share bid price to at least $1.00 for a minimum of ten consecutive business days.
Founded in 1998, Farmmi is a processor and retailer specializing in edible mushrooms such as Shiitake and Mu Er, along with other agricultural commodities. The company operates both online and offline sales channels.
The NASDAQ notification provides Farmmi with additional time to comply with the market's listing standards, which is critical for maintaining its presence on the exchange and access to investors. Failure to meet the minimum bid price requirement can lead to delisting, which can affect a company's visibility and ability to raise capital.
This announcement is based on a press release statement and does not constitute an offer to buy or sell securities. Forward-looking statements in the press release, including projections about future growth, are subject to risks and uncertainties that could cause actual results to differ. These include the ongoing impact of the Covid-19 pandemic on customer businesses and consumer spending, currency fluctuations, and broader economic factors.
Investors and shareholders are reminded that forward-looking statements are based on current assumptions and that the company is not obligated to update them in the future, except as required by law. Farmmi has detailed the risks associated with these statements in filings with the United States Securities and Exchange Commission, accessible at www.sec.gov.
For additional information, Farmmi has directed inquiries to its Investor Relations department.
In other recent news, agricultural product supplier Farmmi, Inc. has disclosed a registered direct offering and concurrent private placement to institutional investors. This strategic move is projected to raise approximately $1 million in gross proceeds before deductions. The deal comprises the sale of over 3.4 million ordinary shares and an equal number of Series A warrants, each with an exercise price of $0.75 per share. The closing of the offering is anticipated subject to customary closing conditions, with Maxim Group LLC acting as the sole placement agent. The effective combined offering price for each share and accompanying warrant is $0.30, and the Series A warrants are immediately exercisable, expiring five years from the date of issuance. These recent developments are part of the company's financial strategies, excluding any speculation or subjective assessment.
InvestingPro Insights
Farmmi's recent NASDAQ extension comes amid challenging financial circumstances, as revealed by InvestingPro data. The company's market capitalization stands at a modest $3.25 million, reflecting its current struggles. This aligns with an InvestingPro Tip indicating that Farmmi's stock price "has fallen significantly over the last year," with a one-year price total return of -77.49%.
The company's financial health appears precarious, with another InvestingPro Tip noting that Farmmi is "quickly burning through cash." This cash burn rate could complicate efforts to meet NASDAQ's minimum bid price requirement. Despite these challenges, Farmmi remains profitable over the last twelve months, according to an InvestingPro Tip.
Investors seeking a more comprehensive analysis can access 13 additional InvestingPro Tips for Farmmi, providing deeper insights into the company's financial position and market performance.
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