The Real Good Food Company Announces Nasdaq Delisting
MWN-AI** Summary
The Real Good Food Company, Inc. (Nasdaq: RGF), a prominent player in the health and wellness frozen and refrigerated foods sector, has announced its impending delisting from the Nasdaq Stock Market, effective January 7, 2025. This decision follows a notification from Nasdaq regarding the Company's failure to comply with its listing requirements, specifically the obligation to file periodic financial reports as mandated under Nasdaq Listing Rule 5250(c)(1).
As a consequence of this delisting, Real Good Foods' shares will be suspended from trading on Nasdaq and are expected to begin trading on the Pink Open Market, a more informal trading platform often referred to as the "pink sheets." There is a possibility that the Company's stock may subsequently be relegated to the OTC's "Expert Market," which restricts public visibility of stock quotes.
Real Good Foods focuses on providing nutritious food options that align with modern dietary trends, emphasizing low sugar, low carbohydrates, and high protein content across its product range, which is available in over 16,000 stores nationwide. They are dedicated to their mission of delivering “Real Food You Feel Good About Eating” through their diverse offerings, including meals and snacks.
The press release incorporates forward-looking statements, highlighting uncertainty regarding future financial reports amidst ongoing challenges, including potential delays in filings and the implications of identified errors in previously issued financial statements. Management acknowledges that numerous risks could affect actual results, reiterating that these forward-looking statements are based on current expectations and available information while clarifying they are not obliged to update them post-release. Investors and stakeholders are encouraged to monitor developments closely as the Company navigates this significant transition.
MWN-AI** Analysis
The recent announcement by The Real Good Food Company regarding its delisting from Nasdaq underscores a critical situation for investors and stakeholders. As the company transitions to trading on the OTC Markets, specifically the Pink Open Market, investors should exercise caution and prepare for increased volatility and reduced liquidity.
The delisting stems primarily from the company's failure to comply with Nasdaq's reporting requirements, raising concerns about its financial health and governance practices. Such a shift typically signals underlying issues that could affect the company's operational stability. Investors should closely monitor the company's next steps regarding its financial reporting and any rectifications related to previously issued statements.
Moreover, the potential move to the OTC's “Expert Market” can further obscure transparency, as trading data may become less accessible for the average investor, complicating price discovery. This condition may discourage long-term institutional investors, who favor stocks with greater regulatory oversight typical of exchanges like Nasdaq.
From a strategic standpoint, short-term traders might find opportunities in the inevitable price fluctuations that could accompany this delisting. However, for long-term investors, the risks may outweigh the potential rewards unless real, actionable improvements in financial reporting and corporate governance are instituted. It would be prudent to set a watchlist for upcoming announcements from the company while categorically reassessing stock exposure based on risk tolerance and investment strategy.
In summary, while The Real Good Food Company may still have potential in the health and wellness sector, current circumstances warrant a cautious approach. Investors are advised to remain vigilant, reassess their positions, and prepare for heightened risk as the company navigates this challenging transition.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
CHERRY HILL, N.J., Jan. 06, 2025 (GLOBE NEWSWIRE) -- The Real Good Food Company, Inc. (Nasdaq: RGF) (“Real Good Foods” or the “Company ”), a leading health and wellness frozen and refrigerated foods company, today announced that the Company received a notice from The Nasdaq Stock Market LLC ("Nasdaq") that it has determined to delist the Company's common stock on Nasdaq. The delisting is a result of the Company's failure to demonstrate compliance with Nasdaq Listing 5250(c)(1) for failure to file periodic financial reports. Trading in the Company's common stock on Nasdaq will be suspended on January 7, 2025. As a result of the foregoing, the Company's common stock is expected to commence trading on the Pink Open Market operated by the OTC Markets Group, Inc. (“OTC”), which is commonly referred to as the “pink sheets,” commencing on January 7, 2025. However, given the Company’s situation with regards to the lack of timely filing, trading may ultimately move to OTC’s “Expert Market,” where quotes for the Company’s common stock will no longer be available for public viewing.
About Real Good Food Company
Real Good Foods (Nasdaq: RGF) is a leading health and wellness frozen and refrigerated foods company, providing a better way to enjoy your favorite foods. The Company’s mission is to provide “Real Food You Feel Good About Eating”, making delicious, nutritious foods that are low in sugar, low in carbohydrates and high in protein. The Real Good Foods family of products includes breakfast, lunch, dinner, and snacks – available in over 16,000 stores nationwide with additional direct-to-consumer options.
To learn more, please visit our website at realgoodfoods.com or join us on social media @realgoodfoods – where we maintain some of the largest followings in the frozen food industry today.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, which statements are subject to considerable risks and uncertainties. Forward-looking statements include all statements other than statements of historical fact contained in this press release, including statements regarding the commencement of trading by the Company’s common stock on the Pink Open Market operated by the OTC and the quoting of such common stock on the OTC’s “Expert Market.” The Company has attempted to identify forward-looking statements by using words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will,” or “would,” and similar expressions or the negative of these expressions.
Forward-looking statements represent management’s current expectations and predictions and are based on information available as of the time such statements are made. Although the Company does not make forward-looking statements unless it believes it has a reasonable basis for doing so, it cannot guarantee their accuracy or completeness. Forward-looking statements involve numerous known and unknown risks, uncertainties and other factors that may cause its actual results or events, assumed or implied by the forward-looking statements. Some of the risks and uncertainties that may cause its actual results to materially differ from those expressed or implied by these forward-looking statements, including the risk of further delays in the filing of the Company’s late periodic reports and restated financial statements in amendments to prior periodic reports, the discovery of additional information regarding the errors identified in the Company’s previously issued consolidated financial statements, the scope of the anticipated restatement of previously issued financial statements as a result of the errors, the remediation by management and the Company’s independent registered public accounting firm of the identified material weaknesses in internal control over financial reporting, and other risk factors described in the section entitled “Risk Factors” in its Annual Report on Form 10-K for the year ended December 31, 2022 and other documents filed with or furnished to the SEC by the Company from time to time. These forward-looking statements speak only as of the date of this press release. Except as required by law, the Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements to reflect the impact of events or circumstances that may arise after the date of this press release.
Investor Relations Contact
The Real Good Food Company
3 Executive Campus, Suite 155
Cherry Hill, NJ 08002
ir@realgoodfoods.com
FAQ**
What specific steps is The Real Good Food Company Inc. RGF planning to take to address the compliance issues with Nasdaq and ensure timely filing of financial reports moving forward?
How will the transition of The Real Good Food Company Inc. RGF's stock trading from Nasdaq to the Pink Open Market impact investor confidence and the company’s market visibility?
Given the potential move to OTC’s “Expert Market,” what strategies does The Real Good Food Company Inc. RGF have in place to maintain investor relations and attract new investors despite reduced trading visibility?
What financial impact does The Real Good Food Company Inc. RGF anticipate as a result of this delisting, and how might it affect the company's operations and growth strategy in the health and wellness food sector?
**MWN-AI FAQ is based on asking OpenAI questions about The Real Good Food Company Inc. (NASDAQ: RGF).
NASDAQ: RGF
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