After the Nasdaq Hearings Panel decided to delist its shares, Leafly Holdings (LFLY, Financials) said that its common stock and warrants would move to the OTC Pink Open Market. After trading on Nasdaq was suspended, trading on the OTC market will start under the symbols LFLY and LFLYW on Jan. 17.
Shares of Leafly dropped 47.9% to $0.76 in trading Thursday following the news.
Leafly's inability to satisfy Nasdaq's basic financial criteria—which include keeping at least $500,000 in net income from ongoing operations for the most recent fiscal year or two of the last three fiscal years—basis the delisting decision. For firms trading on the Nasdaq Capital Market, the business also failed alternative listing standards set by Nasdaq Listing Rule 5550.
Leafly said that its commercial activities will not change with the shift. The business pointed out, meanwhile, that there is no guarantee brokers would maintain a market in its securities or that trading would continue on any over-the-counter platform.
The business also said that it has agreed to extend the maturity date of its 8.00% convertible senior notes from Jan. 31 till July 1, 2025. Leafly will pay 12.5% of the outstanding principle plus accumulated interest by Jan. 21 as part of the extension. The amended conditions also include further financial constraints and provide a first-priority security interest in almost all of Leafly's assets. The other note terms—that of the interest rate and conversion features—remain the same.
Operating a cannabis discovery marketplace, Leafly provides solutions for consumers and companies to improve customer interaction and buying choices. Under more general industry problems, the business keeps looking at ways to better its financial situation and increase liquidity.
