Hempacco Receives Notification of Deficiency from Nasdaq

Rhea-AI Summary

Hempacco Co., Inc. received a notice of deficiency from Nasdaq due to the delay in filing its Annual Report on Form 10-K for the fiscal year ended December 31, 2023. The company has 60 days to submit a plan to regain compliance with the Nasdaq Listing Rule 5250(c)(1) to avoid delisting.

San Diego, California--(Newsfile Corp. - April 23, 2024) - Hempacco Co., Inc. (NASDAQ: HPCO) ("Hempacco" or the "Company"), a vertically integrated hemp manufacturing company, announced today that on April 18, 2024, it received a written notice (the "Notice") from the Listing Qualifications Department of The Nasdaq Stock Market ("Nasdaq") indicating that the Company is not in compliance with Nasdaq Listing Rule 5250(c)(1) (the "Rule") because the Company has not yet filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the "Annual Report").

The Rule requires listed companies to file all required periodic reports with the Securities and Exchange Commission in a timely manner. The Notice does not immediately affect the listing or trading of the Company's securities. However, if the Company fails to regain compliance with the Rule in a timely manner, the Company's securities will be subject to delisting from Nasdaq. Under Nasdaq rules, the Company has 60 calendar days from receipt of the Notice or until June 18, 2024, to submit a plan to regain compliance with the Rule. If Nasdaq accepts the Company's plan, then Nasdaq may grant an exception of up to 180 calendar days from the due date of the Form 10-K or until October 14, 2024, to regain compliance. However, there can be no assurance that Nasdaq will accept the Company's plan to regain compliance or that the Company will be able to regain compliance within any extension period granted by Nasdaq. If Nasdaq does not accept the Company's plan, then the Company will have the opportunity to appeal that decision to a Nasdaq hearings panel.

The Company is working diligently to complete and file the Annual Report and regain compliance with the Rule.

About Hempacco

Hempacco Co., Inc.'s goal is Disrupting Tobacco's™ $1 trillion industry with herb and hemp-based alternatives to nicotine cigarettes by manufacturing and marketing herb, spice, and cannabinoid smokables, vapes, and rolling paper. Hempacco owns The Real Stuff™ functional hemp cigarette and rolling paper brand. In addition, Hempacco manufactures a wide range of CBD-based nutraceutical and beauty products and various gummy products at its 50,000-sf cGMP facility in San Diego.

Hempacco's operational segments include:

1. Manufacturing of vapes, hemp smokables, and hemp rolling papers

2. Manufacturing of cosmetics and nutraceutical products

3. Functional Mushroom product development using patented solubility technology

4. Celebrity-branded gummies and smokable products from Rick Ross, Cheech & Chong, and Snoop Dogg.

For investor inquiries, please contact:

Sandro Piancone, CEO
Investor Relations: ir@hempaccoinc.com
619-779-0715

Safe Harbor Statement

This press release contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as "may," "should," "expects," "anticipates," "contemplates," "estimates," "believes," "plans," "projected," "predicts," "potential," or "hopes" or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: (i) potential failure to meet projected development and related targets; (ii) changes in applicable laws or regulations that may impact our products and business; (iii) the effect of the COVID-19 pandemic on the Company and its current or intended markets; and (iv) other risks and uncertainties described herein, as well as those risks and uncertainties discussed from time to time in other reports and other public filings with the Securities and Exchange Commission (the "SEC") by the Company. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about us. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this press release and other statements made from time to time by us or our representatives might not occur.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/206617

FAQ

Why did Hempacco receive a notice from Nasdaq?

Hempacco received a notice from Nasdaq because it has not filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2023, leading to non-compliance with Nasdaq Listing Rule 5250(c)(1).

What is the consequence of not regaining compliance with the Nasdaq listing rule?

If Hempacco fails to regain compliance with the Nasdaq Listing Rule in a timely manner, its securities may face delisting from Nasdaq.

What is the deadline for Hempacco to submit a plan to regain compliance with the Nasdaq listing rule?

Hempacco has 60 calendar days from the receipt of the notice or until June 18, 2024, to submit a plan to regain compliance with the Nasdaq Listing Rule.

Is there a possibility of an extension to regain compliance with the Nasdaq listing rule?

If Nasdaq accepts Hempacco's plan, an exception of up to 180 calendar days may be granted to regain compliance with the Nasdaq Listing Rule.

What is Hempacco doing to address the deficiency and regain compliance with the Nasdaq listing rule?

Hempacco is working diligently to complete and file the Annual Report in order to regain compliance with the Nasdaq Listing Rule.