- iFresh, Inc. (IFMK) announced that it would be delisted from the Nasdaq stock exchange, effective on November 23, 2021.
- The Nasdaq Hearing Panel has rejected iFresh's appeal against the September decision to delist its common stocks.
- The Panel concluded that it is “not in the best interests of Nasdaq or the investors of the company” to remain listed on the exchange.
The stocks of iFresh, Inc. (NASDAQ: IFMK) nosedived more than 54% on Monday after announcing it will be delisted from the Nasdaq stock exchange, effective on Nov 23.
The Nasdaq Hearing Panel has rejected its appeal against the September delisting decision.
The IFMK stock traded at US$0.5335 at 3:04 pm ET, down 54.01% from its previous close.
iFresh is a supermarket chain and an online grocery platform based in Long Island City, New York. It offers food products like seafood, vegetables, frozen goods, etc., through its stores.
The company has a total of nine supermarkets, a wholesale business, and an online grocery platform focused on Asian-American customers.
The New York-based supermarket operator said that it received notice from the Nasdaq stock exchange on Nov 19, 2021, for delisting. In the letter, Nasdaq said that its hearings panel has rejected its appeal against Sep 22, 2021, decision to delist its common stock.
What’s next for iFresh?
However, iFresh said that it expects its shares would continue to trade on the OTC Expert Market. In addition, the firm said the stock’s delisting from Nasdaq would not impact its day-to-day operations and services. In a press release, the firm further said that it will seek to strengthen ties with the consumers and the market to boost its business.
Why is iFresh delisted from the exchange?
According to its statement, the company faced two main listing shortcomings based on the Nasdaq rules. First, the panel noted that iFresh failed to hold a timely annual meeting of shareholders for the fiscal year ended on March 31, 2020, which is compulsory under the Nasdaq Listing Rules 5620 (a) and 5810 (c)(2)(G).
Second, the panel noted that the firm did not comply with Nasdaq's filing rule under the Listing Rule 5250 (c)(1). It failed to file its Form 10-K for the year ended on March 31, 2021, and Form 10-Q for the period ended on June 30, 2021.
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The firm has a market cap of US$19.58 million, with an EPS of US$-0.02.
The IFMK stock saw the highest price of US$4.25 and the lowest price of US$0.75 in the last 52 weeks. Its share volume on November 19 was 397,484.
In its verdict, the panel also observed that it is not in the “best interests of Nasdaq or the investors” for the company to remain listed on the exchange. However, despite these shortcomings, the iFresh stocks saw remarkable growth in the recent quarters. The IFMK stock grew 46.08% YTD.