Marijuana e-commerce platform Leafly Holdings’ shares will be delisted from the Nasdaq stock market on Jan. 17 after the exchange’s hearings panel determined the company didn’t earn the required minimum $500,000 in net income from operations.
Leafly said in a Thursday news release that when its stock stops trading on the Nasdaq, the Seattle-based company’s shares will begin trading on the OTC Pink Open Market under the ticker symbols LFLY and LFLYW.
A switch from the Nasdaq to the less prestigious OTC Pink Market typically results in reduced liquidity, less institutional investor interest and more difficulty in raising capital, according to an analysis from Stock Titan.
The release also noted that Leafly has reached an agreement with the holders of its 8% convertible senior notes to extend the maturity date from Jan. 31 to July 1.
The company will pay down 12.5% of the outstanding principal amount and accrued interest on the notes by Jan. 21.
It’s not the first time Leafly has fallen out of compliance with Nasdaq rules.
In January 2024, the company was added to Nasdaq’s noncompliant list over a deficiency involving its audit committee composition.
In 2023, Leafly consolidated its shares on a 20-to-1 basis to return to compliance with the Nasdaq requirement of a minimum bid price of $1 for listed equities.
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