Youngevity International, a leading multi-channel company with a segment operating as a commercial hemp enterprise, has been served a Staff Determination Letter by The Nasdaq Stock Market LLC.
The move by The Nasdaq stock exchange to delist Youngevity comes after reports that the California hemp company failed to meet the requirements needed to maintain its Nasdaq compliance. Youngevity was served the letter on September 29, 2020.
According to the letter, the Staff of Nasdaq determined that the company did not meet previously granted terms of the “exception”. The company received a letter of notification from Nasdaq on August 11, 2020, but it failed to act timely.
The September notification letter also puts the company under pressure to appear before a Nasdaq Hearings Panel to avoid suspension.
Youngevity is known as an aggressive, multi-dimensional consumer products company, and in addition to its hemp division, it sells commercial coffee. It also operates a third segment focusing on multi-channel marketing.
In a move to get ahead of the Nasdaq situation, Youngevity has requested a hearing before the Nasdaq panel to challenge the delisting. Accordingly, under the exchange body’s rules, this move puts a stay on delisting and suspension action until October 21. Additionally, the company intends to request an extension to the stay until the expiration of any further extensions provided by the panel as well as the panel’s decision after hearing.
There is no telling whether the Nasdaq panel will grant Youngevity an extension as the company reportedly dropped below the $1 minimum bid price prerequisite of Nasdaq Listing Rule. However, the company intends to trade above $1 on the Nasdaq stock exchange within a compliance window of 180 days.
At the moment, Youngevity continues to trade on Nasdaq as the symbols YGYIP and YGYI while awaiting a decision from the exchange body.