The Real Good Food Company Receives Nasdaq Notice Regarding Potential Delisting
The Real Good Food Company (Nasdaq: RGF) has received a notice from Nasdaq regarding potential delisting due to non-compliance with listing rules. The company failed to file required periodic financial reports with the SEC in a timely manner. Nasdaq has initiated a delisting process, determining that RGF would not be able to become fully current by October 14, 2024. RGF plans to request a hearing before an independent Panel, which will automatically stay any suspension or delisting action through October 4, 2024. The company will seek an extended stay through the hearing process, with the maximum extension possible running through April 11, 2025. However, there is no guarantee that RGF will regain compliance or receive further extensions.
La Real Good Food Company (Nasdaq: RGF) ha ricevuto una comunicazione da Nasdaq riguardo a un possibile delisting a causa del non rispetto delle regole di quotazione. L'azienda non è riuscita a presentare i rapporti finanziari periodici richiesti alla SEC in modo tempestivo. Nasdaq ha avviato un processo di delisting, determinando che RGF non sarebbe in grado di essere completamente in regola entro il 14 ottobre 2024. RGF ha intenzione di richiedere un'udienza davanti a un Comitato indipendente, che sospenderà automaticamente qualsiasi azione di sospensione o delisting fino al 4 ottobre 2024. L'azienda cercherà un'ulteriore sospensione attraverso il processo di udienza, con l'estensione massima possibile fino all'11 aprile 2025. Tuttavia, non vi è alcuna garanzia che RGF ripristinerà la conformità o riceverà ulteriori estensioni.
La Real Good Food Company (Nasdaq: RGF) ha recibido un aviso de Nasdaq sobre un posible deslistado debido al incumplimiento de las reglas de cotización. La empresa no presentó a tiempo los informes financieros periódicos requeridos a la SEC. Nasdaq ha iniciado un proceso de deslistado, determinando que RGF no podría estar completamente al día para el 14 de octubre de 2024. RGF planea solicitar una audiencia ante un Panel independiente, que suspenderá automáticamente cualquier acción de suspensión o deslistado hasta el 4 de octubre de 2024. La empresa buscará una prórroga a través del proceso de audiencia, siendo la extensión máxima posible hasta el 11 de abril de 2025. Sin embargo, no hay garantía de que RGF recupere el cumplimiento o reciba más extensiones.
Real Good Food Company (Nasdaq: RGF)는 상장 규정 미준수로 인한 잠재적 상장 폐지에 대해 Nasdaq으로부터 통지를 받았습니다. 회사는 SEC에 필수적인 정기 재무 보고서를 제때 제출하지 못했습니다. Nasdaq은 RGF가 2024년 10월 14일까지 완전한 현재 상태가 될 수 없다고 판단하여 상장 폐지 절차를 시작했습니다. RGF는 독립 패널 앞에서 청문회를 요청할 계획입니다, 이는 2024년 10월 4일까지 모든 정지 또는 상장 폐지 조치를 자동으로 연기하게 됩니다. 회사는 청문회 과정에서 연장을 요청할 것이며, 최대 연장 기간은 2025년 4월 11일까지입니다. 하지만 RGF가 준수를 재회복하거나 추가 연장을 받을 것이라는 보장은 없습니다.
La Real Good Food Company (Nasdaq: RGF) a reçu un avis de Nasdaq concernant un potentiel delisting en raison d'une non-conformité aux règles de cotation. L'entreprise n'a pas réussi à déposer à temps les rapports financiers périodiques requis auprès de la SEC. Nasdaq a engagé un processus de delisting, déterminant que RGF ne serait pas en mesure de se mettre complètement en conformité d'ici le 14 octobre 2024. RGF prévoit de demander une audience devant un panel indépendant, ce qui suspendra automatiquement toute action de suspension ou de delisting jusqu'au 4 octobre 2024. L'entreprise cherchera à prolonger cette suspension pendant le processus d'audience, la prolongation maximale possible allant jusqu'au 11 avril 2025. Cependant, il n'y a aucune garantie que RGF récupérera sa conformité ou recevra d'autres prolongations.
Die Real Good Food Company (Nasdaq: RGF) hat eine Mitteilung von Nasdaq über eine mögliche Delistung aufgrund der Nichteinhaltung der Zulassungsregeln erhalten. Das Unternehmen hat es versäumt, die erforderlichen regelmäßigen Finanzberichte rechtzeitig bei der SEC einzureichen. Nasdaq hat ein Delistungsverfahren eingeleitet und festgestellt, dass RGF bis zum 14. Oktober 2024 nicht vollständig compliancefähig sein wird. RGF plant, eine Anhörung vor einem unabhängigen Gremium zu beantragen, was automatisch alle Suspendierungs- oder Delistungsmaßnahmen bis zum 4. Oktober 2024 aussetzen wird. Das Unternehmen wird eine Verlängerung bis zum Anhörungsprozess anstreben, wobei die maximal mögliche Verlängerung bis zum 11. April 2025 läuft. Es gibt jedoch keine Garantie, dass RGF die Compliance wiederherstellt oder weitere Verlängerungen erhält.
- None.
- Potential delisting from Nasdaq due to non-compliance with listing rules
- Failure to file required periodic financial reports with the SEC in a timely manner
- Risk of suspension or delisting if compliance is not achieved or extensions not granted
- Uncertainty regarding the company's ability to regain compliance with Nasdaq listing requirements
Insights
The Nasdaq delisting notice for Real Good Foods (RGF) is a significant red flag for investors. This stems from the company's failure to file timely financial reports, which is important for maintaining transparency and investor trust. The extended non-compliance period suggests deeper financial or operational issues that RGF hasn't resolved.
While RGF plans to appeal, the chances of maintaining its listing seem slim. Even if granted the maximum extension to April 2025, the company's inability to file reports for an extended period raises serious concerns about its financial health and management capabilities. This situation often leads to reduced liquidity, making it harder for investors to trade shares. It may also trigger covenant breaches in debt agreements, potentially accelerating financial distress.
Investors should be extremely cautious. The lack of current financial information makes it nearly impossible to accurately assess RGF's value or risks. This uncertainty typically leads to increased volatility and potential for significant losses.
The Nasdaq delisting notice presents serious legal and regulatory challenges for Real Good Foods. Failure to comply with SEC filing requirements not only jeopardizes the company's listing status but also exposes it to potential enforcement actions by the SEC.
The company's decision to request a hearing is a standard procedural move, but it's important to note that this doesn't guarantee a favorable outcome. The Panel's discretion is and without substantial progress in filing the required reports, RGF's chances of maintaining its listing are slim.
Investors should be aware that delisting often triggers shareholder lawsuits, especially if there's a suspicion of intentional non-disclosure or mismanagement. Additionally, the lack of timely financial reporting could be interpreted as a breach of fiduciary duty by the company's management and board, potentially leading to further legal complications.
The potential delisting of Real Good Foods from Nasdaq could have far-reaching market implications. In the health and wellness frozen food sector, RGF's struggles may create opportunities for competitors to gain market share. Investors might shift their focus to more stable companies in this niche, potentially benefiting firms like Conagra Brands or Nomad Foods.
This situation also highlights the increasing scrutiny on companies in the health food space, where growth expectations are high. RGF's troubles could lead to a broader reassessment of valuations in this sector, particularly for smaller, less established players.
From a broader perspective, this case serves as a cautionary tale for investors in high-growth, niche food companies. It underscores the importance of robust financial reporting and transparency, especially in a market where consumer trends can shift rapidly. The incident may prompt increased due diligence on similar companies, potentially affecting valuations across the specialty food industry.
CHERRY HILL, N.J., Sept. 18, 2024 (GLOBE NEWSWIRE) -- The Real Good Food Company, Inc. (Nasdaq: RGF) (“Real Good Foods” or the “Company”), a leading health and wellness frozen and refrigerated foods company, announced that on September 12, 2024, it received a notification from The Nasdaq Stock Market LLC (“Nasdaq”) informing the Company that Nasdaq has initiated a process that could result in the delisting of the Company’s securities from Nasdaq due to the Company’s failure to comply with Nasdaq Listing Rule 5250(c)(1) (the “Listing Rule”), which requires listed companies to file in a timely manner all required periodic financial reports with the Securities and Exchange Commission (the “SEC”). The Nasdaq Staff has determined that the Company would not be able to become fully current with regards to the Company’s late filings by October 14, 2024 (the maximum extent of the Staff’s discretion under the Listing Rules), and as a result, the Staff determined to initiate the delisting process. Accordingly, the Company intends to timely request a hearing before an independent Hearings Panel (the “Panel”). The hearing request will automatically stay any suspension or delisting action through October 4, 2024. Concurrent with the hearing request, the Company intends to seek, subject to the Panel’s discretion, an extended stay of suspension or delisting through the pendency of the hearing and the expiration of any additional extension period granted by the Panel following the hearing. Pursuant to the Nasdaq Listing Rules, the maximum amount of time that can be granted by the Panel runs through April 11, 2025.
Despite the efforts described above, there can be no assurance that the Company will ultimately regain compliance with all applicable requirements for continued listing or that the Panel will grant the Company a further extension.
About Real Good Food Company
Real Good Foods (Nasdaq: RGF) is a leading health and wellness frozen and refrigerated foods company, providing a better way to enjoy your favorite foods. The Company’s mission is to provide “Real Food You Feel Good About Eating”, making delicious, nutritious foods that are low in sugar, low in carbohydrates and high in protein. The Real Good Foods family of products includes breakfast, lunch, dinner, and snacks – available in over 16,000 stores nationwide with additional direct-to-consumer options.
To learn more, please visit our website at realgoodfoods.com or join us on social media @realgoodfoods – where we maintain some of the largest followings in the frozen food industry today.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, which statements are subject to considerable risks and uncertainties. Forward-looking statements include all statements other than statements of historical fact contained in this press release, including statements regarding the timing of the filing of Company’s late periodic reports and amendments to prior periodic reports, the Company’s plan to request a hearing to appeal its delisting determination by Nasdaq, and the Company’s plan to request various extension periods to regain compliance with the Listing Rule. The Company has attempted to identify forward-looking statements by using words such as “anticipate,” "believe," "estimate," "expect," "intend," "may," "plan," "predict," "project," "should," "will," or "would," and similar expressions or the negative of these expressions.
Forward-looking statements represent management's current expectations and predictions about trends affecting the Company’s business and industry and are based on information available as of the time such statements are made. Although the Company does not make forward-looking statements unless it believes it has a reasonable basis for doing so, it cannot guarantee their accuracy or completeness. Forward-looking statements involve numerous known and unknown risks, uncertainties and other factors that may cause its actual results, performance or achievements to be materially different from any future results, performance or achievements predicted, assumed or implied by the forward-looking statements. Some of the risks and uncertainties that may cause its actual results to materially differ from those expressed or implied by these forward-looking statements, including the risk of further delays in the filing of the Company’s late periodic reports and restated financial statements in amendments to prior periodic reports, the discovery of additional information regarding the error identified in the Company’s previously issued consolidated financial statements, the scope of the anticipated restatement of previously issued financial statements as a result of the error, the remediation by management and the Company’s independent registered public accounting firm of the identified material weaknesses in internal control over financial reporting, the Panel’s determination following the Company’s appeal of its delisting decision, the Panel’s decision whether or not to grant the Company various extension periods following the submission of a hearing request to regain compliance with the Listing Rule, the Company’s ability to regain compliance with the Listing Rule and other continued listing standards and other risk factors described in the section entitled "Risk Factors" in its Annual Report on Form 10-K for the year ended December 31, 2022 and other documents filed with or furnished to the SEC by the Company from time to time. These forward-looking statements speak only as of the date of this press release. Except as required by law, the Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements to reflect the impact of events or circumstances that may arise after the date of this press release.
Investor Relations Contact
The Real Good Food Company
3 Executive Campus, Suite 155
Cherry Hill, NJ 08002
ir@realgoodfoods.com
FAQ
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