Hempacco Receives Notification of Deficiency from Nasdaq

Rhea-AI Summary

Hempacco (NASDAQ: HPCO), a vertically integrated hemp manufacturing company, has received a written notice from Nasdaq's Listing Qualifications Department regarding its failure to file the Quarterly Report on Form 10-Q for the period ended June 30, 2024. This delinquency serves as an additional basis for potential delisting of the company's securities from Nasdaq.

The notice indicates that Nasdaq's hearings panel will consider this matter in their decision about Hempacco's continued listing. The company is working to complete and file its delinquent Quarterly Reports and plans to present its views on this deficiency to the hearings panel by August 27, 2024.

Positive

• Hempacco is actively working to complete and file its delinquent Quarterly Reports
• The company plans to present its views to the Nasdaq hearings panel by August 27, 2024

Negative

• Hempacco received a notification of deficiency from Nasdaq
• The company is delinquent in filing its Quarterly Report on Form 10-Q for Q2 2024
• This deficiency serves as an additional basis for potential delisting from Nasdaq
• Hempacco's continued listing on Nasdaq is at risk

Insights

Financial Analyst

Hempacco's notification of deficiency from Nasdaq is a serious concern for investors. The company's failure to file its Q2 2024 10-Q report on time indicates potential financial reporting issues or internal control weaknesses. This delinquency, combined with previous listing compliance problems, significantly increases the risk of delisting from Nasdaq. A delisting would severely impact stock liquidity and investor confidence.

The company's statement about working to complete the filing and present its case to the hearings panel by August 27, 2024, provides little reassurance. Investors should be cautious as this situation could lead to restricted trading or a move to over-the-counter markets, potentially resulting in substantial value loss for shareholders. The lack of timely financial information also makes it challenging to assess Hempacco's current financial health and performance.

Legal Expert

This notification escalates Hempacco's regulatory compliance issues to a critical level. The company now faces a multi-faceted delisting threat, with the late 10-Q filing compounding existing problems. The Nasdaq hearings panel will likely scrutinize Hempacco's overall compliance history and ability to meet listing requirements going forward.

Investors should be aware of potential legal ramifications. Late filings can trigger SEC investigations and shareholder lawsuits, especially if material information was withheld or misrepresented. The company's ability to remedy this situation quickly is crucial. If Hempacco fails to file by August 27, 2024, or if the panel is unsatisfied with their explanation, a delisting decision could be imminent, potentially leading to breach of contract issues with business partners and lenders.

San Diego, California--(Newsfile Corp. - August 23, 2024) - Hempacco Co., Inc. (NASDAQ: HPCO) ("Hempacco" or the "Company"), a vertically integrated hemp manufacturing company, received a written notice (the "Notice") from the Listing Qualifications Department of The Nasdaq Stock Market ("Nasdaq") the Company was delinquent in filing its Quarterly Report on Form 10-Q for the period ended June 30, 2024, that this matter serves as an additional basis for delisting the Company's securities from the Nasdaq, and that Nasdaq's hearings panel will consider this matter in their decision regarding the Company's continued listing on the Nasdaq.

The Nasdaq listing rules require listed companies to timely file all required periodic reports with the Securities and Exchange Commission. The Company is working to complete and file its delinquent Quarterly Reports on Form 10-Q and intends to present its views with respect to this deficiency to the hearings panel by August 27, 2024.

About Hempacco

Hempacco Co., Inc.'s goal is Disrupting Tobacco's™ nearly $1 trillion industry with herb and hemp-based alternatives to nicotine cigarettes by manufacturing and marketing herb, spice, and cannabinoid smokables and rolling paper and other nutraceutical products. Hempacco owns The Real Stuff™ functional hemp cigarette and rolling paper brand.

Safe Harbor Statement

This press release contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as "may," "should," "expects," "anticipates," "contemplates," "estimates," "believes," "plans," "projected," "predicts," "potential," or "hopes" or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: (i) potential failure to meet projected development and related targets; (ii) changes in applicable laws or regulations that may impact our products and business; (iii) the effect of geopolitical and economic conditions on the Company and its current or intended markets; and (iv) other risks and uncertainties described herein, as well as those risks and uncertainties discussed from time to time in other reports and other public filings with the Securities and Exchange Commission (the "SEC") by the Company. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about us. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this press release and other statements made from time to time by us or our representatives might not occur.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/221035

FAQ

Why did Hempacco (HPCO) receive a notification of deficiency from Nasdaq?

Hempacco (HPCO) received a notification of deficiency from Nasdaq because it failed to file its Quarterly Report on Form 10-Q for the period ended June 30, 2024, on time.

What are the potential consequences for Hempacco (HPCO) due to this Nasdaq notification?

The notification serves as an additional basis for potential delisting of Hempacco's (HPCO) securities from Nasdaq. The Nasdaq hearings panel will consider this matter in their decision regarding the company's continued listing.

How is Hempacco (HPCO) responding to the Nasdaq deficiency notice?

Hempacco (HPCO) is working to complete and file its delinquent Quarterly Reports on Form 10-Q. The company plans to present its views regarding this deficiency to the Nasdaq hearings panel by August 27, 2024.

When is Hempacco (HPCO) expected to address the Nasdaq hearings panel about the deficiency?

Hempacco (HPCO) intends to present its views with respect to the deficiency to the Nasdaq hearings panel by August 27, 2024.