Are These 3 Cannabis Stocks at Risk of Being De-Listed from the Nasdaq or NYSE??

During the last few years, there has been a significant increase in the number of Canadian cannabis companies that trade on a big board stock exchange like the Nasdaq or New York Stock Exchange (NYSE).

In order to be listed on a big board stock exchange in the US, companies must meet certain standards to be allowed to list on the exchange and continue to trade on the exchange.

During the last year, the cannabis sector has come under heavy pressure and momentum (as measured by the relative strength index or RSI) has been at oversold levels for a majority of this time. Due to the continued pressure, several companies have conducted reverse splits in order to meet a big board stock exchange’s continued listing requirement.

According to the Nasdaq, if a listed company trades for 30 consecutive business days below the $1.00 minimum closing bid price requirement, it will send the company a deficiency notice, which states that it has been afforded a “compliance period” of 180 calendar days to regain compliance with the applicable requirements.

Although several operators have attempted to raise the stock price by conducting reverse stock splits, many stocks are once again trading below a big board stock exchange’s continued listing requirement.

Today, we have highlighted 3 Canadian Licensed Producers that could be de-listed in the future due to the current price of the stock. We believe our readers should be aware of this potential risk as well as the companies that are not compliant with price requirements.

1. HEXO Corporation (Nasdaq: HEXO) (TSX: HEXO)
2. Sundial Growers Inc. (NYSE: SNDL)
3. FSD Pharma Inc. (Nasdaq: HUGE) (CSE: HUGE)

If you are interested in learning more about companies that could be de-listed from a big board stock exchange, please send an email to support@technical420.com with the subject “Delisting Candidates” to be added to our distribution list.

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Michael Berger is Managing Partner of StoneBridge Partners, LLC and Founder of Technical420.com. Prior to entering the cannabis industry, Michael was an Equity Research Analyst at Raymond James Financial covering the Energy Sector. Michael has been featured in publications such as The Street, Bloomberg, US Money News, and hosts various cannabis events across North America.

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