Primis Financial Corp Faces Nasdaq Compliance Challenges
Understanding Primis Financial Corp's Nasdaq Compliance Issues
Recently, Primis Financial Corp. (NASDAQ: FRST) publicly acknowledged its ongoing battles with compliance related to its Nasdaq listings. The corporation has received several notices pertaining to its delayed filing of quarterly reports, specifically for the periods ending in mid-2024. This announcement highlights the critical situation in which the company finds itself as it navigates through complex financial regulations.
What Happened with the 10-Q Filings?
Primis Financial Corp. is currently facing noncompliance issues as reported by Nasdaq. The primary concern stems from their failure to submit the Quarterly Report on Form 10-Q for both Q2 and Q3 of 2024. According to Nasdaq Listing Rule 5250(c)(1), companies are required to file all periodic reports with the Securities and Exchange Commission (SEC) in a timely manner. This rule is in place to maintain transparency and protect investors in listed companies.
Consequences of Noncompliance
The implications of these missed filings can lead to substantial challenges for any company navigating the public market. As stipulated, Primis has received an Additional Notice from Nasdaq concerning these inconsistencies, which directs the company to submit an update to the Nasdaq Hearings Panel by a specified deadline.
Company's Response and Future Steps
As previous communications have indicated, Primis moved swiftly to reclaim compliance status after initially receiving a notice of possible delisting due to the delays. They have prepared and filed both the 2023 Form 10-K and the 2024 Q1 Form 10-Q with hopes to address the outstanding Q2 and Q3 filings shortly. The firm expressed confidence that they can regain compliance with Nasdaq regulations soon.
About Primis Financial Corp.
Primis Financial Corp. has reported substantial financial metrics as of the latest quarter, showcasing total assets of $4.0 billion, total loans held for investment amounting to $3.0 billion, and total deposits hitting $3.3 billion. The firm operates through a network of twenty-four full-service branches and caters to individuals and enterprises in various capacities, adapting to the needs of both small and medium-sized businesses.
Looking Ahead
Despite the recent challenges, the outlook for Primis remains cautiously optimistic. The management remains proactive in overcoming the hurdles associated with regulatory compliance, ensuring that all necessary reports are completed and re-submitted promptly. Their commitment to transparency and compliance is paramount in rebuilding trust and securing their position in the public market.
Frequently Asked Questions
What has Primis Financial Corp. been notified about?
Primis Financial has received a notice regarding its noncompliance with Nasdaq rules due to delayed 10-Q filings.
What does the Additional Notice from Nasdaq entail?
It requires Primis to update the Nasdaq Hearings Panel regarding their compliance status and provide necessary documentation.
What steps is Primis taking to regain compliance?
The Company is filing overdue reports and planning to submit the necessary documents promptly to Nasdaq.
What are the financial standings of Primis Financial Corp.?
Primis has significant assets totaling $4.0 billion, with robust loan and deposit levels indicating a strong financial position.
How does this affect Primis's stock status?
Currently, there are no immediate impacts on the Company's stock listing, but compliance is critical for future operations.
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