Real Good Food's stock (RGF) has reached $3.59, though this remains significantly below its 52-week high of $19.32. According to InvestingPro data, the company's market capitalization stands at just $10.34 million. While the stock has shown recent momentum, InvestingPro data reveals a challenging year with an -80.96% return over the past 12 months. The company's overall financial health score is rated as WEAK, though InvestingPro Tips indicate strong return over the last month. Unlock 8 additional ProTips and comprehensive financial analysis with an InvestingPro subscription.
In other recent news, Real Good Food Company has seen significant developments. The company announced a 12-to-1 reverse stock split of its Class A and Class B common stock, aiming to comply with Nasdaq's minimum bid price requirement. The company also received stockholder approval for the issuance of additional shares. Analysts from InvestingPro maintain a strong buy recommendation on the stock despite projecting negative earnings per share of -$0.98 for fiscal year 2024.
Real Good Food Company has also restated its financial statements for 2022 and the quarterly periods of 2023 due to errors in revenue recognition. The company's audit committee and board of directors made this decision, which affects the reported revenues, costs of sales, and accounts receivable for the mentioned periods.
Furthermore, the company has made significant corporate governance changes, including the issuance of preferred stock and amendments to its Certificate of Incorporation. These changes were part of an agreement with Emblem Investments Fund I, LP, involving the issuance of Series A Preferred Stock.
The company is also facing potential delisting from the Nasdaq Global Market due to non-compliance with the exchange's listing rules. To address this, the company has requested a hearing to seek an extension to regain compliance. Additionally, the company has increased its borrowing capacity by amending its credit agreement with PMC Financial Services Group, raising the revolving credit facility from $42 million to $46 million.
Finally, Real Good Food has expanded its distribution in 4,000 Walmart (NYSE:WMT) stores nationwide with the introduction of its new Seasoned Chicken Breast Chunks. These are the recent developments impacting The Real Good Food Company.
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