TAMPA, FL—UPEXI, Inc., a medicinal chemicals and botanical products company, has received an additional 180-day period to meet the Nasdaq Capital Market's minimum bid price requirement, as per its recent SEC filing. The company, previously known as Grove, Inc., is listed under the ticker NASDAQ:UPXI and is headquartered in Tampa, Florida.
On April 1, 2024, UPEXI was notified by Nasdaq that its common stock had not met the $1.00 minimum bid price for thirty consecutive business days, as required by Nasdaq Listing Rule 5550(a)(2). The initial 180-day compliance period ended on September 30, 2024, without the company achieving the necessary bid price. In response, UPEXI filed for an extension, which Nasdaq granted on October 1, 2024.
The company has cautioned that these statements are forward-looking and subject to risks and uncertainties, many of which are beyond UPEXI's control. The company's ability to regain compliance with Nasdaq's listing requirements could be affected by various factors, including market conditions and broader economic influences.
Investors are advised that the information in this article is based on UPEXI's recent SEC filing and should consider the risks detailed in UPEXI's Annual Report and Quarterly Reports, including the risk factors in Item IA, which discuss factors that could affect the company's financial performance and future results.
UPEXI's Chief Financial Officer, Andrew J. Norstrud, signed off on the SEC filing dated October 2, 2024, reinforcing the company's commitment to addressing the compliance issue and maintaining its listing on the Nasdaq Capital Market.
In other recent news, UPEXI, Inc. has approved a 20-to-1 reverse stock split to meet NASDAQ's minimum share price requirements. This strategic move aims to reduce the number of shares in circulation and increase the per-share price, thereby enabling UPEXI to comply with NASDAQ's listing standards. The company also confirmed that this action would not alter the par value per share.
In addition to this significant development, UPEXI has made substantial progress in its restructuring efforts, reducing its debt by $16.1 million through asset sales and operational consolidation. This includes the sale of E-core/Neti and Tytan Tiles, which decreased debt by approximately $12 million and added $2 million in cash. The sale of a Clearwater, Florida warehouse also contributed to this reduction, eliminating around $2.6 million in debt and adding $1.4 million to working capital.
Furthermore, UPEXI is addressing a NASDAQ compliance issue by planning to file the required Form 10-Q. The company has also engaged GBQ Partners LLC to audit its financial statements for the fiscal years ending June 30, 2023, and 2024.
InvestingPro Insights
UPEXI's current financial situation, as revealed by InvestingPro data, provides additional context to the company's struggle to meet Nasdaq's minimum bid price requirement. The company's market capitalization stands at a mere $4 million, with its stock price at $0.21, significantly below the $1.00 threshold. This aligns with the InvestingPro Tip that UPEXI is "Trading near 52-week low," with the price at only 10.38% of its 52-week high.
The company's financial performance has been challenging, as indicated by its negative P/E ratio of -0.34 and operating income of -$9.61 million for the last twelve months. These figures support the InvestingPro Tip that UPEXI is "Not profitable over the last twelve months." Additionally, the stock's performance has been poor, with a one-year price total return of -88.01%, corroborating the tip that the "Price has fallen significantly over the last year."
These insights from InvestingPro provide a clearer picture of why UPEXI is facing listing compliance issues and the urgency behind its planned reverse stock split. Investors considering UPEXI should note that InvestingPro offers 14 additional tips for this stock, which could provide further valuable insights into the company's financial health and prospects.
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