Leafly's Notice of Delisting from Nasdaq
Leafly Holdings, Inc. (“Leafly” or “the Company”) (NASDAQ: LFLY), a leading online cannabis discovery marketplace, recently received a notice regarding the delisting of its common stock from The Nasdaq Stock Market LLC. This decision stems from the Company's failure to meet the minimum requirement of $500,000 in net income from continuing operations within the past fiscal year or two out of the last three years. Such requirements are outlined by Nasdaq's Listing Rule 5550(b), as well as various alternative listing requirements.
Transition to Over-The-Counter Market
On January 17, 2025, trading in the Company’s common stock and its associated warrants will be suspended on Nasdaq. Consequently, the Company anticipates that its securities will begin trading on the OTC Pink Open Market under the symbols “LFLY” and “LFLYW.” It’s crucial to emphasize that this transition will not adversely affect Leafly's business operations. However, there’s uncertainty surrounding whether a broker will maintain a market for the Company’s securities on the over-the-counter market.
Details on Convertible Debt Agreements
In addition to the news regarding its stock, Leafly announced a significant agreement concerning its 8.00% convertible senior notes due 2025. The Company has successfully negotiated an extension of the maturity date from January 31, 2025, to July 1, 2025. As part of the amendment, Leafly will prepay 12.5% of the outstanding principal and will also make accrued interest payments by January 21, 2025. These modifications will introduce specific financial covenants to benefit the noteholders, while also granting a first priority security interest in a substantial portion of the Company's assets.
About Leafly
Leafly has a stellar reputation as a trusted resource for millions of cannabis consumers, guiding them through their purchase decisions with reliable insights and extensive product information. The platform empowers cannabis businesses to enhance their presence and reach through innovative advertising solutions and technology services. Users can access Leafly through its website or by downloading the Leafly mobile app available in both Apple’s App Store and Google Play.
Frequently Asked Questions
What is Leafly's recent announcement about delisting?
Leafly announced it will be delisted from Nasdaq due to not meeting minimum income requirements.
When will Leafly's stock begin trading on the OTC market?
The transition to the OTC Pink Open Market is set to take place on January 17, 2025.
What are the new trading symbols for Leafly?
Leafly's common stock will be represented by the symbol “LFLY,” while its warrants will trade under “LFLYW.”
What is the significance of the convertible debt extension?
The maturity date has been extended to July 1, 2025, allowing Leafly to manage its debt obligations more effectively.
How does Leafly support cannabis consumers?
Leafly educates cannabis consumers and helps them find products while offering services that aid cannabis businesses in reaching customers.
