22nd Century (NASDAQ:XXII) stock is falling on Monday as the tobacco products company is in danger of being delisted from the Nasdaq Exchange.
The tobacco company received a delisting notice from the Nasdaq Listing Qualifications Department last week. The issue is that the company is not compliant with Listing Rule 5550(b)(1).
This rule covers the required minimum shareholders’ equity needed to remain listed on the exchange. The company’s 10-K for 2023 revealed that its shareholder equity is below the $2.5 million needed to remain on the exchange.
What’s Next for XXII Stock?
22nd Century has 45 days to submit a plan to the Nasdaq Exchange to regain compliance with the rule. The company says it intends to do this to avoid delisting. If it can’t, there’s also the option of a 180-day extension that could help it solve this problem.
XXII stock is down 33.4% as of Monday morning. That comes as roughly 708,000 shares of the company’s stock have changed hands. This is closing in on the company’s daily average trading volume of about 1.3 million shares.
Investors will also note that XXII is coming off a massive rally on Friday. It closed out normal trading hours up 140.5%, with some 72.6 million shares traded.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
