Business of Cannabis writes
International medical cannabis operator IM Cannabis has now received its second warning from NASDAQ regarding its share price, months after pushing through a share price consolidation to remain on the exchange.
Last week IM Cannabis, which now operates in Israel and Germany, received a written warning from the exchange that it ‘is not in compliance with the minimum bid brice requirements’.
It comes as IM Cannabis’ stock price fell below $1 in June and remained below the minimum threshold for over 30 days.
In order to prevent being delisted, it has until January 31, 2023 to bring its share price back above $1 for ten consecutive days.
Business of Cannabis reported last July that IM Cannabis had received its first minimum bid price warning from NASDAQ, with the company forced to resort to a 1:10 reverse stock split in November force its share price back above the threshold.
Like its NASDAQ stablemate Akanda, which also resorted to a reverse stock split to artificially boost its share price and remain listed, its value has continued to decline ever since, leaving both companies facing the prospect of delisting a second time.
Unlike Akanda however, IM Cannabis may benefit from positive investor sentiment towards Israeli cannabis operators over the past week, which has seen a number of local operators’ share prices spike (as reported below).
At the time of writing, IM Cannabis’ share price is sitting just below $1, falling from a high of $1.03 last week.
Aside from external regulatory changes driving up Israeli cannabis stock prices, IM Cannabis is also engaged in an ongoing cost cutting drive which has already seen it pull out of Canada, and may yet help encourage more positive sentiment from investors.
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