Sow Good Inc. Faces Nasdaq Delisting Over Bid Price Rule

Published 20/05/2025, 14:18
Sow Good Inc. Faces Nasdaq Delisting Over Bid Price Rule

Sow Good Inc. received a notification from Nasdaq on May 14, 2025, indicating non-compliance with the minimum bid price requirement. The food products manufacturer’s stock, currently trading at $0.78 and down nearly 96% over the past year according to InvestingPro data, has not met the $1.00 minimum bid price for 30 consecutive business days, violating Nasdaq’s Listing Rule 5550(a)(2).

The company has been granted a 180-day period, ending on November 10, 2025, to regain compliance. Compliance can be achieved if the stock’s closing bid price reaches $1.00 for at least ten consecutive business days within this timeframe. InvestingPro analysis indicates the company operates with a significant debt burden and weak financial health metrics, which could complicate its recovery efforts. If Sow Good Inc. fails to meet this requirement, it may be eligible for an additional 180-day period, provided it meets all other initial listing standards, except the Bid Price Rule.

The company’s board is considering options, including a reverse stock split, to address the issue. Stockholders will vote on a proposed amendment allowing a 1-for-3 reverse stock split at the Annual Meeting on June 13, 2025. Approval of the amendment would give the board discretion to implement the reverse split.

The company’s future actions to regain compliance are subject to stockholder approval and other regulatory requirements. There is no assurance that Sow Good Inc. will be able to maintain its Nasdaq listing.

This information is based on a press release statement.

In other recent news, Sow Good Inc. reported financial results for the first quarter of 2025, missing analyst expectations. The company posted an earnings per share (EPS) of -$0.23, compared to the forecasted -$0.16, and revenue of $2.5 million, which fell short of the anticipated $5.5 million. This marks a significant decrease from the $11.4 million revenue reported in the same period last year. Despite the disappointing results, Sow Good is focusing on product innovation and international expansion to drive future growth. The company is implementing operational cost reductions to improve its financial health, including the introduction of automated packaging machines to enhance efficiency. Sow Good also entered into exchange agreements with noteholders to extend debt maturities by five years, reflecting confidence in its recovery plan. The company is exploring new opportunities in the Middle East market and plans to launch new products, such as yogurt melts and beef jerky, later in the year. Meanwhile, Sow Good is navigating challenges from increased competition and market volatility in the freeze-dried candy sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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