SAN DIEGO - Hempacco Co., Inc. (NASDAQ: HPCO), a company specializing in hemp-based smoking alternatives, is currently out of compliance with Nasdaq's listing rules due to a delay in filing its quarterly report. The Nasdaq Listing Qualifications Department issued a notice to Hempacco on May 23, 2024, indicating the company's non-compliance with Listing Rule 5250(c)(1), which mandates timely submissions of periodic reports.
The notice, while not immediately impacting the trading of Hempacco's securities, sets a deadline of June 17, 2024, for the company to present a plan to regain compliance. If Nasdaq approves the plan, Hempacco may receive an extension up to October 14, 2024, to file the overdue quarterly report for the fiscal quarter ended March 31, 2024. Failure to submit the plan or regain compliance within the grace period could lead to the delisting of Hempacco's securities from the Nasdaq exchange.
Hempacco has expressed its commitment to fulfilling the necessary requirements and filing the report as soon as possible. However, the company's future compliance is uncertain, and there is no assurance that Nasdaq will accept its plan or that the company will meet the extended deadline.
The company, known for its herb and hemp-based smoking products, aims to provide alternatives to traditional nicotine cigarettes. Its portfolio includes The Real Stuff™ brand of functional hemp cigarettes and rolling paper.
In the press release, Hempacco made forward-looking statements regarding its intentions to address the non-compliance issue and its prospects for future performance and growth. These statements, inherently subject to risks and uncertainties, reflect the company's expectations but are not guarantees of future performance.
This news is based on a recent press release statement from Hempacco. It is important for investors to note that the company's ability to regain compliance with Nasdaq's listing requirements is currently in question and subject to the exchange's approval of their forthcoming compliance plan.
InvestingPro Insights
As Hempacco Co., Inc. (NASDAQ: HPCO) navigates the challenges of Nasdaq compliance, investors are closely monitoring the company's financial health and market performance. The InvestingPro platform offers a deeper dive into the company's current financial standing, with real-time metrics that may shed light on Hempacco's investment potential.
According to recent InvestingPro data, Hempacco is grappling with a market capitalization of a mere 3.71 million USD, reflecting a potentially high-risk investment due to its small size. The company's Price / Book ratio, as of the last twelve months leading up to Q3 2023, stands at 0.4, which could signal that the stock is trading at a low valuation relative to its book value. Additionally, Hempacco's revenue has seen a sharp decline of 31.79% over the same period, raising concerns about its sales trajectory.
An InvestingPro Tip worth noting is that Hempacco operates with a significant debt burden, which could be problematic considering the company’s recent revenue downturn. Furthermore, another InvestingPro Tip highlights that Hempacco may have trouble making interest payments on its debt, a situation exacerbated by weak gross profit margins and a gross profit of -1.12 million USD over the last twelve months as of Q3 2023.
Investors interested in a more comprehensive analysis of Hempacco's financial outlook can find additional insights on the InvestingPro platform. There are 16 more InvestingPro Tips available for Hempacco, offering a thorough assessment of the company's financial health and market position. For those looking to explore these tips further, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
As Hempacco works to address its compliance issues with Nasdaq, these financial metrics and expert insights serve as valuable tools for investors to evaluate the risks and opportunities associated with the company's stock.
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