Forafric Announces Nasdaq Compliance Status

Rhea-AI Summary

Forafric Global PLC (Nasdaq: AFRI), an African agribusiness company, has resolved its compliance status with Nasdaq. The company initially received a notice of non-compliance on January 14, 2025, for failing to file its second quarter financial report (Form 6-K) by the December 31, 2024 deadline, violating Listing Rule 5250(c)(2). Forafric promptly addressed this issue by submitting the required Six Month Report to the SEC on January 16, 2025, after which Nasdaq confirmed the company's return to compliance status on the same day.

Positive

• Swift resolution of Nasdaq compliance issue within 2 days
• Maintained Nasdaq listing status

Negative

• Missed regulatory filing deadline for Q2 financial report

Insights

Legal and Compliance Expert

The company's temporary non-compliance with Nasdaq listing requirements and subsequent resolution represents a minor regulatory event with market impact. While failing to file required financial reports on time can be concerning, Forafric's swift remediation within just two days of receiving the notice demonstrates strong administrative responsiveness. The Six Month Report submission on January 16 promptly resolved the compliance issue, averting any serious consequences that could have escalated to potential delisting proceedings. For a $277M market cap company operating in African markets, maintaining listing compliance is important for investor confidence and market access. The quick resolution suggests robust internal controls and compliance mechanisms, though the initial delay warrants monitoring of future filing deadlines. This temporary technical violation has been fully remediated with minimal business impact.

Financial Markets Analyst

This compliance event provides insight into Forafric's regulatory standing and operational efficiency. The delayed filing of interim financials, while not ideal, is relatively common among smaller international companies navigating U.S. reporting requirements. The rapid correction indicates effective management response to regulatory challenges. For context, smaller companies trading on Nasdaq often face similar temporary compliance issues, particularly those operating in emerging markets with different reporting standards. The swift resolution minimizes any potential market impact and helps maintain the company's credibility with institutional investors. For retail investors, this event is primarily administrative in nature - think of it as missing a homework deadline but turning it in during the grace period. The company's market value remains stable at $277 million, suggesting minimal investor concern over this brief compliance hiccup.

CASABLANCA, MOROCCO, Jan. 21, 2025 (GLOBE NEWSWIRE) -- Forafric Global PLC (Nasdaq: AFRI, or the “Company”), a vertically integrated agribusiness serving Africa, today announced that on January 14, 2025, it received written notice from the listing qualifications department of The Nasdaq Stock Market (“Nasdaq”) stating that since the Company has not yet filed a Form 6-K containing an interim balance sheet and income statement as of the end of its second quarter (the “Six Month Report”) by December 31, 2024, the Company was not in compliance with Listing Rule 5250 (c) (2) (the “Rule”).

On January 16, 2025, the Company filed its Six Month Report with the Securities and Exchange Commission, and on the same day, the Company received a letter from Nasdaq confirming that the Company is now in compliance with the Rule.

About Forafric

Forafric is a leading agribusiness player in Africa with activities in Morocco and Sub-Saharan Africa. It is the milling industry leader with a complete range of flour and semolina, and secondary processing products such as pasta and couscous. The Group operates 12 industrial units, and 2 logistics platforms. Forafric exports its products to more than 45 countries around the world. Forafric intends to continue expanding both in Morocco and in Africa and contributing to growing Africa food security.

Forward-Looking Statements

This press release contains “forward-looking statements.” Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential,” or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control, and cannot be predicted or quantified, and, consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. None of the outcomes expressed herein are guaranteed. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) our ability to obtain quality raw materials; (ii) difficulties in obtaining financing on commercially reasonable terms; (iii) changes in the size and nature of our competition; (iv) loss of one or more key executives or scientists; and (v) difficulties in securing regulatory approval for our materials and products. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 20-F. Investors are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.

Contact Information: 
info@forafric.com

FAQ

When did AFRI resolve its Nasdaq compliance issue?

Forafric (AFRI) resolved its Nasdaq compliance issue on January 16, 2025, by filing its Six Month Report with the SEC.

What caused AFRI's Nasdaq compliance violation in January 2025?

AFRI violated Nasdaq Listing Rule 5250(c)(2) by failing to file its second quarter financial report (Form 6-K) by the December 31, 2024 deadline.

How long was AFRI out of compliance with Nasdaq listing rules?

AFRI was out of compliance for approximately 2 days, from receiving the notice on January 14, 2025, until resolving the issue on January 16, 2025.

What regulatory filing did AFRI submit to regain Nasdaq compliance?

AFRI submitted its Form 6-K containing the interim balance sheet and income statement for the second quarter (Six Month Report) to regain compliance.