Farmmi, Inc. ("Farmmi" or the "Company") (NASDAQ:FAMI), an agricultural products supplier in China, announced today that on May 20, 2022, it received a Staff determination letter (the "Letter") from the Listing Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") notifying the Company of the Staff's determination to delist the Company's securities from The Nasdaq Capital Market because the Company's securities have had a closing bid price below $0.10 for ten consecutive trading days, which triggers a notice of delisting pursuant to Nasdaq Listing Rule 5810(c)(3)(A)(iii)(1) (the "$0.10 Rule"). In addition to the $0.10 Rule delisting notice, the Company also currently fails to satisfy the requirement that the closing bid price of its securities remain at $1.00 or higher as required by Nasdaq Listing Rule 5810(c)(3)(A) (the "Minimum Bid Price Rule"). The Company has received a period of 180 calendar days and a second period of an additional 180 calendar days to return to compliance with the Minimum Bid Price Rule, which compliance period expires on May 30, 2022. If the Company's securities fail to regain compliance with the Minimum Bid Price Rule, Nasdaq will have an additional basis for delisting the securities.
Pursuant to the Letter, unless the Company requests an appeal of the Letter, trading of the Company's ordinary shares will be suspended at the opening of business on June 1, 2022, and a Form 25-NSE will be filed with the Securities and Exchange Commission (the "SEC"), which will remove the Company's securities from listing and registration on the Nasdaq Stock Market.
The Company plans to appeal the Staff's determination to a Hearings Panel (the "Panel"), and separately it expects the recently approved consolidation of its ordinary shares will take effect on May 31, 2022. A hearing request will stay the suspension of the Company's securities and the filing of the Form 25-NSE pending the Panel's decision.