Heritage Distilling Co. Regains Compliance with Nasdaq Listing Rules After Receiving Notice of Non-Compliance

Rhea-AI Summary

Heritage Distilling, a leading craft distiller of premium brands trading on Nasdaq under CASK, has successfully regained compliance with Nasdaq's listing requirements.

The compliance issue arose when Heritage failed to meet periodic filing requirements under Nasdaq Listing Rule 5250(c)(1), which mandates timely submission of financial reports to the SEC. Nasdaq notified the company of this non-compliance on April 22, 2025.

Key developments:

• Heritage filed its 2024 Annual Report Form 10-K on April 28, 2025
• Nasdaq staff confirmed compliance restoration on the same day
• The matter has been closed with no further actions required

This resolution ensures Heritage Distilling maintains its position on the Nasdaq exchange, marking a positive development for the premium spirits manufacturer.

Positive

• Company regained compliance with Nasdaq listing requirements by filing 2024 Form 10-K
• Matter is fully resolved with no further actions required

Negative

• Previous non-compliance with Nasdaq listing requirements due to delayed financial reporting

Insights

Financial Compliance Expert

Heritage resolves Nasdaq listing compliance issue by filing overdue 2024 Annual Report, eliminating delisting risk and preserving market access.

Heritage Distilling Holding Company's successful resolution of its Nasdaq compliance issue represents a significant positive development for the company and its shareholders. On April 22, 2025, the company received notification that it no longer met Nasdaq's periodic filing requirement (Listing Rule 5250(c)(1)) which mandates timely submission of all required financial reports to the SEC.

The company swiftly addressed this issue by filing its 2024 Annual Report on Form 10-K on April 28, 2025 - just six days after receiving the notice. Nasdaq staff has subsequently confirmed that Heritage now fully complies with the listing rule and has formally closed the matter, requiring no further remedial actions from the company.

This resolution eliminates a substantial risk factor that could have severely impacted shareholder value. Non-compliance with Nasdaq listing requirements can trigger a progression of consequences potentially culminating in delisting, which typically leads to reduced trading liquidity, institutional investor exodus, and restricted access to capital markets.

Unlike other compliance issues that might require sustained improvements in metrics like minimum bid price or market value, this type of filing compliance matter has a binary resolution - either the required documents are filed or they aren't. The company's prompt remediation suggests an ability to address regulatory requirements effectively.

For current shareholders, this development removes a significant overhang that could have limited Heritage's strategic flexibility and capital market access, preserving the valuable benefits of maintaining a Nasdaq listing.

GIG HARBOR, Wash., April 28, 2025 (GLOBE NEWSWIRE) -- Heritage Distilling Holding Company, Inc. (“HDC” or “Heritage” or the “Company”) (Nasdaq: CASK), a leading craft distiller of innovative premium brands, today reported it regained compliance with the Nasdaq regarding the filing of periodic reports after filing its 2024 Annual Report of Form 10-K with the Securities and Exchange Commission on April 28, 2025. On April 22, 2025, Nasdaq notified the Company that it no longer met the periodic filing requirement for The Nasdaq Stock Market under Listing Rule 5250(c)(1) (the “Rule”), which requires listed companies to timely file all required periodic financial reports with the Securities and Exchange Commission.

On April 28, 2025, Nasdaq staff notified the Company that the Company has regained compliance with the Nasdaq Listing Rule 5250(c)(1) when the Company filed its Form 10-K for the year ended December 31, 2024, on April 28, 2025. Nasdaq staff has determined that the Company complies with the listing Rule and has closed the matter. No further action is required of the Company related to this matter.

About Heritage Distilling Company, Inc.

Heritage is among the premier independent craft distilleries in the United States offering a variety of whiskeys, vodkas, gins, rums and ready-to-drink canned cocktails. Heritage has been North America's most awarded craft distillery by the American Distilling Institute for ten consecutive years out of the more than 2,600 craft producers. Beyond this remarkable achievement, Heritage has also garnered numerous Best of Class, Double Gold, and Gold medals at esteemed national and international spirits competitions. As one of the largest craft spirits producers on the West Coast by revenue, the company is expanding its presence nationwide through a diverse range of sales channels, including wholesale, on-premises venues, e-commerce and the innovative Tribal Beverage Network (TBN). The TBN initiative, a groundbreaking collaboration with Native American tribes, focuses on developing Heritage-branded distilleries, unique tribal brands and tasting rooms tailored to tribal communities. By serving patrons of tribal casinos and entertainment venues, the TBN creates meaningful economic and social benefits for participating tribes, while providing an additional avenue for tribes to exercise and strengthen their sovereignty. This unique partnership reflects Heritage’s commitment to innovation, community engagement and sustainable growth.

Forward-Looking Statements

This press release contains forward-looking statements, including statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “aims,” “anticipates,” “believes,” “could,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “may,” “plans,” “possible,” “potential,” “seeks,” “will,” and variations of these words or similar expressions that are intended to identify forward-looking statements. Any such statements in this press release that are not statements of historical fact may be deemed to be forward-looking statements.

Any forward-looking statements in this press release are based on Heritage’s current expectations, estimates and projections only as of the date of this release and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the risks of slowing growth for its online eCommerce sales, interruptions in that market segment, or the availability and pricing of bulk bourbon for its products. These and other risks concerning Heritage’s programs and operations are described in additional detail in its registration statement on Form S-1, and its quarterly 10-Q and annual 10-K filings, which are on file with the SEC. Heritage explicitly disclaims any obligation to update any forward-looking statements except to the extent required by law.

Investor Contact
(800) 595-3550
ir@heritagedistilling.com

FAQ

Why did Heritage Distilling (CASK) receive a Nasdaq non-compliance notice in April 2025?

Heritage Distilling received a Nasdaq non-compliance notice on April 22, 2025, for failing to meet the periodic filing requirement under Listing Rule 5250(c)(1), which requires timely filing of financial reports with the SEC.

How did Heritage Distilling (CASK) regain Nasdaq compliance in April 2025?

Heritage Distilling regained Nasdaq compliance on April 28, 2025, by filing its 2024 Annual Report Form 10-K with the SEC, satisfying the listing requirements under Rule 5250(c)(1).

What happens now that Heritage Distilling (CASK) is compliant with Nasdaq rules?

With Heritage Distilling now compliant with Nasdaq listing rules, the matter is closed and no further action is required from the company regarding this compliance issue.

When did Heritage Distilling (CASK) file its 2024 Annual Report?

Heritage Distilling filed its 2024 Annual Report Form 10-K with the Securities and Exchange Commission on April 28, 2025.

What is Nasdaq Listing Rule 5250(c)(1) that affected Heritage Distilling stock?

Nasdaq Listing Rule 5250(c)(1) requires companies listed on The Nasdaq Stock Market to file all required periodic financial reports with the SEC in a timely manner to maintain their listing status.