Canadian giant Aurora Cannabis Inc. (Nasdaq: ACB) (TSX: ACB) has six months to get its share price back above $1 or face the specter of losing its Nasdaq listing, the company was told by the exchange’s management group.
Nasdaq Stock Market LLC told the Canadian cannabis giant it hasn’t met its minimum stock price requirement since Feb. 8, as its share price closed below a U.S. dollar for 30 consecutive business days.
The stock has slumped to 68 cents since hitting $150 five years ago.
The news came five days after Aurora asked Canadian regulators to approve a $650 million plan to sell more shares of stock and debt in exchange for some cozy capital.
With a Sept. 20 deadline, the exchange gave Aurora roughly six months to close at or above $1 for at least 10 consecutive business days. Nasdaq said that it has the discretion to extend this 10-day period in certain circumstances.
Aurora said that the letter doesn’t impact the day-to-day trading of Aurora’s shares or result in its delisting. The warning also doesn’t affect the company’s compliance status with the Toronto Stock Exchange, which doesn’t have a minimum price requirement.
The company said in a statement that it will actively monitor its share price throughout the compliance period and “consider all available options to resolve the deficiency” with every intention to regain compliance and maintain its listing.
Paths could involve finding new ways to boost investor confidence, exploring more financial restructuring options, or executing reverse stock splits to increase share prices.
A few cannabis companies have been struggling lately to keep their stock prices above a dollar.