Hempacco Co. (NASDAQ: HPCO), a company listed on the Nasdaq Stock Market, has been notified of non-compliance with Nasdaq's filing requirements due to its delay in submitting the annual report for the fiscal year ended December 31, 2023.
The company received this notice on April 18, 2024, from the Listing Qualifications Department of Nasdaq, specifically citing a violation of Listing Rule 5250(c)(1), which mandates timely filing of periodic reports.
Despite the notice, there is no immediate impact on the trading of Hempacco's securities. The company has been given 60 days, until June 18, 2024, to present a plan to Nasdaq for regaining compliance. If the plan is accepted, Nasdaq may allow up to an additional 180 days from the original filing deadline, or until October 14, 2024, for the company to file its overdue annual report.
Hempacco has communicated its intent to work diligently to complete the Annual Report and meet Nasdaq's requirements. Nevertheless, the company acknowledges that there is no guarantee Nasdaq will accept its compliance plan or that it will be able to rectify the situation within the potential extension period.
If the company fails to regain compliance and its securities are delisted, Hempacco warns of several adverse effects. Delisting could diminish the liquidity and market price of its common stock, decrease the number of investors, hinder its ability to raise equity financing, limit the use of registration statements for freely tradable securities, and impair the provision of equity incentives to employees.
This situation emphasizes the importance of adherence to market regulations and the potential consequences of failing to do so. The information in this article is based on a press release statement from Hempacco Co. regarding the notice received from Nasdaq.
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