Greenlane Holdings Receives Nasdaq Delisting Notice for Low Stock Price
Ticker: GNLN · Form: 8-K · Filed: Jan 30, 2024 · CIK: 1743745
Complexity: simple
Sentiment: bearish
Topics: delisting-notice, compliance-risk, stock-price, nasdaq
TL;DR
**Greenlane got a delisting notice from Nasdaq for low stock price; they have until July 22 to fix it or get booted.**
AI Summary
Greenlane Holdings, Inc. announced on January 24, 2024, that it received a delisting notice from Nasdaq because its stock price fell below the minimum bid price requirement of $1.00 per share for 30 consecutive business days. The company has 180 calendar days, until July 22, 2024, to regain compliance by having its stock close at $1.00 or more for at least 10 consecutive business days. This matters to investors because failure to regain compliance could lead to the stock being delisted from Nasdaq, making it harder to trade and potentially reducing its value.
Why It Matters
Delisting from Nasdaq would make Greenlane Holdings stock less accessible and liquid for investors, potentially leading to a further decline in its share price and making it harder to sell.
Risk Assessment
Risk Level: high — The company faces a significant risk of delisting, which could severely impact its stock's liquidity and investor confidence.
Analyst Insight
A smart investor would closely monitor Greenlane Holdings' stock price performance and any corporate actions, such as a reverse stock split, taken to regain Nasdaq compliance. Given the delisting risk, new investments might be considered highly speculative, and existing investors should evaluate their risk tolerance.
Key Numbers
- $1.00 — Minimum Bid Price (The required minimum closing bid price per share for Nasdaq listing.)
- 30 — Consecutive Business Days (The period Greenlane's stock traded below the minimum bid price.)
- 180 — Calendar Days (The compliance period granted to Greenlane to regain Nasdaq listing.)
- 10 — Consecutive Business Days (The number of days Greenlane's stock must close at or above $1.00 to regain compliance.)
Key Players & Entities
- Greenlane Holdings, Inc. (company) — the registrant receiving the delisting notice
- Nasdaq (company) — the stock exchange issuing the delisting notice
- $1.00 (dollar_amount) — the minimum bid price requirement
- January 24, 2024 (date) — the date of the earliest event reported
- July 22, 2024 (date) — the deadline to regain compliance
Forward-Looking Statements
- Greenlane Holdings will attempt a reverse stock split to boost its share price above $1.00. (Greenlane Holdings, Inc.) — medium confidence, target: July 22, 2024
- The stock price of Greenlane Holdings will remain volatile as the compliance deadline approaches. (Greenlane Holdings, Inc.) — high confidence, target: July 22, 2024
FAQ
What is the primary reason Greenlane Holdings, Inc. received a delisting notice from Nasdaq?
Greenlane Holdings, Inc. received a delisting notice because its common stock failed to maintain a minimum bid price of $1.00 per share for 30 consecutive business days, as stated in Nasdaq Listing Rule 5550(a)(2).
What is the deadline for Greenlane Holdings, Inc. to regain compliance with Nasdaq's listing requirements?
Greenlane Holdings, Inc. has 180 calendar days, until July 22, 2024, to regain compliance with Nasdaq's minimum bid price requirement.
How can Greenlane Holdings, Inc. regain compliance with Nasdaq's minimum bid price rule?
To regain compliance, the closing bid price of Greenlane Holdings, Inc.'s common stock must be $1.00 per share or more for a minimum of 10 consecutive business days during the 180-day compliance period.
What Nasdaq Listing Rule did Greenlane Holdings, Inc. violate?
Greenlane Holdings, Inc. violated Nasdaq Listing Rule 5550(a)(2), which requires a minimum bid price of $1.00 per share.
What was the date of the earliest event reported in this 8-K filing regarding the delisting notice?
The date of the earliest event reported in this 8-K filing regarding the delisting notice was January 24, 2024.
Filing Stats: 730 words · 3 min read · ~2 pages · Grade level 11.8 · Accepted 2024-01-30 16:33:50
Key Financial Figures
- $0.01 — which registered Class A Common Stock, $0.01 par value per share GNLN Nasdaq Global
Filing Documents
- gnln-20240124.htm (8-K) — 34KB
- 0001743745-24-000024.txt ( ) — 165KB
- gnln-20240124.xsd (EX-101.SCH) — 2KB
- gnln-20240124_lab.xml (EX-101.LAB) — 25KB
- gnln-20240124_pre.xml (EX-101.PRE) — 13KB
- gnln-20240124_htm.xml (XML) — 3KB
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 January 24, 2024, Gina Collins gave notice of her resignation from the Board of Directors (the "Board") of Greenlane Holdings, Inc. (the "Company") and from each committee of the Board, to be effective immediately. Ms. Collins was an independent director of the Company, and as a result of her resignation, the Company no longer complies with the majority independent board requirement of The Nasdaq Stock Market LLC ("Nasdaq") as set forth in Nasdaq Listing Rule 5605(b)(1) because independent directors do not comprise a majority of the Board, and Nasdaq's audit committee requirements as set forth in Nasdaq Listing Rule 5605(c)(2)(A) because the Audit Committee of the Board is not comprised of at least three independent directors. On January 29, 2024, in accordance with Nasdaq Listing Rules, the Company notified Nasdaq of Ms. Collins' resignation and the resulting non-compliance. On January 30, 2024, the Company received a notice from Nasdaq acknowledging the fact that the Company does not meet the requirements of such rules. In accordance with Nasdaq Listing Rules 5605(b)(1)(A) and 5605(c)(4) and the Nasdaq notice, to regain compliance with the Nasdaq Listing Rules, the Company has until the earlier of its next annual stockholders meeting or January 24, 2025; or if the next annual stockholders meeting is held before July 22, 2024, then the Company must evidence compliance no later than July 22, 2024. The Board intends to identify a candidate to replace Ms. Collins and to appoint a new director who satisfies the requirements of the Nasdaq Listing Rules prior to the expiration of the applicable cure period. Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. As disclosed in Item 3.01 above, on January 24, 2024, Ms. Collins gave notice of her
01. Financial Statements and Exhibits
Item 9.01. Financial Statements and Exhibits. Exhibit No. Description 104 Cover Page Interactive Data File * Furnished herewith.
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. GREENLANE HOLDINGS, INC. Dated: January 30, 2024 By: /s/ Lana Reeve Lana Reeve Chief Financial and Legal Officer