CHERRY HILL, N.J. - The Real Good Food Company, Inc. (NASDAQ: RGF), known for its health and wellness frozen and refrigerated foods, is currently facing delisting from the Nasdaq Stock Market. The company received two notifications on April 19, 2024, indicating noncompliance with Nasdaq's listing requirements.
The first notice pointed out that the closing bid price of Real Good Foods' common stock had fallen below $1.00 per share for 30 consecutive business days, violating Nasdaq Listing Rule 5450(a)(1). The company has been granted a 180-day grace period until October 16, 2024, to rectify this issue. If the company's stock price reaches $1.00 or higher for at least ten consecutive business days during this period, it will regain compliance.
The second notice addressed the company's failure to file its Annual Report on Form 10-K for the year ended December 31, 2023, in a timely manner, breaching Nasdaq Listing Rule 5250(c)(1). Real Good Foods has 60 days, until June 18, 2024, to submit a plan to regain compliance. If the plan is accepted, Nasdaq may extend the deadline to meet this requirement up to 180 days from the Annual Report's original due date, which would be October 14, 2024.
While these notifications do not immediately affect the listing of Real Good Foods' securities on Nasdaq, there is no guarantee that the company will be able to regain compliance with the listing standards. The company has stated its intention to monitor its stock price closely during the grace period and is considering options to meet the minimum bid price requirement, including a potential reverse stock split.
Real Good Foods has made its mark in the food industry by offering low-sugar, low-carbohydrate, and high-protein products. The company's products are available in over 16,000 stores nationwide and through direct-to-consumer channels.
This news is based on a press release statement from Real Good Foods and does not imply any assurance of the company's future performance or ability to maintain its Nasdaq listing.
InvestingPro Insights
The Real Good Food Company, Inc. (NASDAQ: RGF) is navigating through a challenging period with the looming threat of Nasdaq delisting. The InvestingPro data reveals a market capitalization of just 5.97 million USD, indicating a relatively small enterprise value in the financial markets. This is underscored by a Price / Book ratio of 0.36 as of the last twelve months ending Q3 2023, which suggests the stock is trading at a low multiple of its book value.
Moreover, the company's revenue growth stands out with an 18.88% increase over the last twelve months as of Q3 2023. This figure aligns with one of the InvestingPro Tips, which highlights analysts' anticipation of sales growth in the current year. However, this growth should be weighed against a significant debt burden and concerns that the company may have trouble making interest payments on its debt, as noted in the InvestingPro Tips.
From a trading perspective, the stock is indeed trading near its 52-week low, with a price performance that has fallen significantly over the last three months, showing a -74.27% return. This aligns with the company’s consideration of a potential reverse stock split to meet the minimum bid price requirement and regain compliance with Nasdaq's listing rules.
For investors looking for deeper insights, InvestingPro offers additional tips that could provide a broader perspective on Real Good Foods' financial health and market position. Interested readers can find more tips to guide their investment decisions, and with the use of the coupon code PRONEWS24, they can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
As the company approaches its next earnings date on May 10, 2024, stakeholders and potential investors will be keen to see whether Real Good Foods can leverage its product presence in over 16,000 stores and direct-to-consumer channels to stabilize its financial standing and maintain its listing on the Nasdaq Stock Market.
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