Edible Garden AG Faces Nasdaq Delisting, Gets Extension

TL;DR

EDBL got a Nasdaq delisting warning but has until Oct 7 to fix its stock price.

AI Summary

Edible Garden AG Inc. received a notice on April 11, 2024, indicating it failed to meet the continued listing standards of the Nasdaq Capital Market. The company has been granted an exception to regain compliance by October 7, 2024, by meeting the minimum bid price requirement of $1.00 per share.

Why It Matters

Failure to meet listing standards could lead to delisting from Nasdaq, impacting the stock's liquidity and investor confidence.

Risk Assessment

Risk Level: medium — The company is at risk of delisting from Nasdaq if it cannot meet the minimum bid price requirement.

Key Numbers

• $1.00 — Minimum Bid Price (Requirement to regain Nasdaq listing compliance)

Key Players & Entities

• Edible Garden AG Inc. (company) — Registrant
• Nasdaq Capital Market (company) — Listing Exchange
• April 11, 2024 (date) — Date of Notice
• October 7, 2024 (date) — Compliance Deadline
• $1.00 (dollar_amount) — Minimum Bid Price Requirement

FAQ

Key Financial Figures

• $0.0001 — ch registered Common Stock, par value $0.0001 per share EDBL The Nasdaq Stock Mar
• $288,000 — the Company's stockholders' deficit of $288,000, as reported in the Company's Annual Re
• $2,500,000 — 3, is less than the required minimum of $2,500,000; and (ii) as of April 11, 2024, the Com
• $35 million — of market value of listed securities of $35 million or net income from continuing operation
• $500,000 — et income from continuing operations of $500,000 in the most recently completed fiscal y

Filing Documents

• edbl_8k.htm (8-K) — 27KB
• 0001477932-24-002198.txt ( ) — 166KB
• edbl-20240411.xsd (EX-101.SCH) — 6KB
• edbl-20240411_lab.xml (EX-101.LAB) — 16KB
• edbl-20240411_cal.xml (EX-101.CAL) — 1KB
• edbl-20240411_pre.xml (EX-101.PRE) — 12KB
• edbl-20240411_def.xml (EX-101.DEF) — 4KB
• edbl_8k_htm.xml (XML) — 5KB

01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing

Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing. On April 11, 2024, Edible Garden AG Incorporated (the "Company") received a letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") indicating that the Company does not comply with the minimum stockholders' equity requirement for continued listing on the Nasdaq Capital Market under Nasdaq Listing Rule 5550(b)(1) (the "Stockholders' Equity Rule") because: (i) the Company's stockholders' deficit of $288,000, as reported in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, is less than the required minimum of $2,500,000; and (ii) as of April 11, 2024, the Company does not meet the alternative compliance standards of market value of listed securities of $35 million or net income from continuing operations of $500,000 in the most recently completed fiscal year or in two of the last three most recently completed fiscal years. The Company has until May 28, 2024, to submit a plan to Nasdaq to regain compliance with the Stockholders' Equity Rule. If Nasdaq accepts the Company's plan, then Nasdaq may grant an extension of up to 180 calendar days from April 11, 2024, or through October 8, 2024, to regain compliance with the Stockholders' Equity Rule. The Company received an additional letter from the Listing Qualifications Department of Nasdaq on April 11, 2024 indicating that the Company is not in compliance with Nasdaq Listing Rule 5550(a)(4), which requires the Company to have a minimum of 500,000 publicly held shares (the "Publicly Held Shares Rule"). The letter from Nasdaq indicated that as of April 10, 2024, due to a 1-for-20 reverse stock split of the Company's common stock that became effective on April 5, 2024, the Company no longer meets the requirements of the Publicly Held Shares Rule. The Company has until May 28, 2024 to submit a letter to Nasdaq with its plan to regain compliance with

Forward-Looking Statements

Forward-Looking Statements This report contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words like "believe," "intend," "may," "will," and "would" or the negative thereof or other variations thereon or comparable terminology, are used to identify forward-looking statements, although not all forward-looking statements contain these words. Although the Company believes that it is basing its expectations and beliefs on reasonable assumptions within the bounds of what is currently known about its business and operations, there can be no assurance that actual results will not differ materially from what the Company expects or believes. Some of the factors that could cause the Company's actual results to differ materially from its expectations or beliefs are disclosed in the "Risk Factors" section, as well as other sections, of its reports filed with the Securities and Exchange Commission, which include, without limitation, its ability to regain compliance with the Nasdaq Listing Rules and maintain the listing of its securities on Nasdaq. All forward-looking statements speak only as of the date on which they are made, and the Company undertakes no duty to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 2

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. EDIBLE GARDEN AG INCORPORATED Date: April 17, 2024 /s/ James E. Kras Name: James E. Kras Title: Chief Executive Officer 3

View Full Filing

View this 8-K filing on SEC EDGAR