Typically, companies are granted a 180-day compliance period to rectify such deficiencies. However, Greenlane Holdings has been deemed ineligible for this grace period due to its history of reverse stock splits, including a significant 1-for-11 reverse stock split on August 5, 2024, and a 1-for-750 reverse stock split on June 27, 2025. The cumulative effect of these actions has resulted in a reverse stock split ratio of 1-for-8,250 over the past two years, which disqualifies the company from receiving the standard compliance period.
The notification states that Greenlane's securities will be subject to delisting unless the company requests a hearing before the Nasdaq Hearings Panel by April 1, 2026. The company intends to make this request, which will temporarily halt any further delisting actions while the appeal is considered. During this appeal process, the company's stock will continue to be listed and traded on Nasdaq. However, there is no guarantee that the Panel will grant the request for continued listing or that the company will be able to regain compliance with the bid price rule in the future.
This situation raises concerns about the company's operational execution and strategy outlook, as failure to maintain its listing could significantly impact investor confidence and liquidity. Investors will be closely monitoring the developments surrounding Greenlane's appeal and its efforts to stabilize its stock price in the coming months.
