The Valens Company, a manufacturer of cannabis products, said it has received an extension of 180 calendar days from the Nasdaq Stock Market to regain compliance with the Nasdaq's minimum $1 bid price requirement, following the expiration of the initial 180 calendar days period to regain compliance on December 12, 2022.
The Nasdaq determination is based on the company meeting the continued listing requirement for market value of publicly held shares and all other applicable requirements for initial listing on the Nasdaq Capital Market with the exception of the Bid Price Requirement, and the company's written notice of its intention to cure the deficiency during the second compliance period by effecting a share consolidation, if necessary.
As a result of the extension, the company now has until June 12, 2023, to regain compliance with the Bid Price Requirement. If at any time before June 12, 2023, the bid price of the company's common shares closes at or above $1 per share for a minimum of 10 consecutive business days, Nasdaq will provide written notification to the company that it has achieved compliance with the Bid Price Requirement. If the company chooses to implement a share consolidation to regain compliance, it must complete the consolidation no later than ten business days prior to the expiration of the additional 180 calendar day period in order to timely regain compliance.
If the company does not regain compliance with the Bid Price Requirement by June 12, 2023, Nasdaq will provide written notification to the company that its shares will be subject to delisting. At such time, the company may appeal the delisting determination to a Nasdaq Hearings Panel. The company would remain listed pending the Panel's decision. There can be no assurance that, if the company does appeal a subsequent delisting determination, such appeal would be successful.
This current notification from Nasdaq has no immediate effect on the listing or trading of the Company's shares, which will continue to trade on the Nasdaq Capital Market under the symbol VLNS. The company is also listed on the Toronto Stock Exchange and the notification letter does not affect the Company's compliance status with such listing.
As a reminder, the company continues to expect to close the plan of arrangement with SNDL Inc. in January 2023, well in advance of the June 12, 2023 deadline to regain compliance with the Bid Price Requirement. Pursuant to the plan of arrangement SNDL Inc. will acquire all of the issued and outstanding common shares of Valens on the basis of 0.3334 of a SNDL common share for each outstanding Valens common share, on and subject to the terms of the arrangement agreement dated August 22, 2022.