Real Good Food Company Faces Nasdaq Delisting Threats, Seeks Compliance Extension

Real Good Food Company, Inc. (NASDAQ: RGF) is confronting potential delisting from the Nasdaq Stock Market in the wake of non-compliance issues, as stated in an 8-K filing dated October 18, 2024. The company disclosed that Nasdaq had initiated proceedings that might lead to the delisting of its securities for failing to meet specific Nasdaq Listing Rules.

In particular, the company cited its inability to comply with Nasdaq Listing Rule 5450(a)(1), commonly known as the “Bid Price Rule,” mandating listed companies to maintain a minimum bid price of $1.00 per share over 30 consecutive business days. Despite being granted 180 calendar days until October 16, 2024, to regain compliance, the company failed to do so, paving the way for potential delisting.

Additionally, Real Good Food received notice on October 22, 2024, about potential delisting due to non-compliance with Nasdaq Listing Rule 5450(b)(3)(C) or the “MVPHS Rule.” This rule necessitates listed firms to uphold a minimum market value for publicly held shares of $15.0 million over 30 consecutive business days. Similar to the Bid Price Rule, the company was unable to meet the compliance deadline, further exacerbating its delisting risks.

To address these challenges and the previously disclosed non-compliance with the requirement to file required periodic financial reports in a timely manner with the SEC, Real Good Food has requested a hearing before an independent Hearings Panel. This hearing request puts a hold on any potential suspension or delisting action, providing the company with an opportunity to seek an extension to meet all continued listing requisites.

The company intends to appeal for an extension—subject to the Panel’s discretion—to regain compliance with all applicable listing requirements. The maximum extension timeframe granted by the Panel under the Nasdaq Listing Rules extends to April 16, 2025, and April 21, 2025, for compliance with the Bid Price Rule and MVPHS Rule, respectively.

Despite the company’s efforts, uncertainty lingers about its ability to regain full compliance with listing prerequisites or secure additional extensions from the Hearings Panel.

The Real Good Food Company, Inc. has demonstrated resilience in its pursuit of compliance, yet the road to meeting Nasdaq’s criteria remains uncertain as regulatory evaluations loom.

While Real Good Food strives to overcome these challenges, the future trajectory of its listing status on Nasdaq hinges on the outcomes of its compliance efforts and the decisions rendered in forthcoming hearings. Investors and stakeholders will be keenly monitoring developments as the company navigates through this critical juncture in its listing journey.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Real Good Food’s 8K filing here.

About Real Good Food

The Real Good Food Company, Inc, through its subsidiary, operates as a health and wellness focused frozen food company in the United States. The company develops, manufactures, and markets foods designed to be high in protein, low in sugar, and made from gluten- and grain-free ingredients. It offers comfort foods, such as bacon wrapped stuffed chicken, chicken enchiladas, grain-free cheesy bread breakfast sandwiches, and various entrée bowls under the Realgood Foods Co brand name, as well as sells private-label products.