Organigram gets Nasdaq bid‑price notice with May 2027 deadline
Trading continues on Nasdaq and the TSX as the cannabis producer faces a consecutive-day bid-price test to regain compliance.
Adrian Kessler
Nasdaq's bid-price deficiency notice was received by a cannabis issuer on Nov. 11 after its closing bid stayed below US$1 for 30 consecutive business days. Organigram Global Inc. TSEOGI NASDAQOGI has until May 10, 2027, to regain compliance while its shares continue trading.
The company's Nov. 13 announcement identified Nasdaq Listing Rule 5450(a)(1) as the standard it breached. Organigram said the notification does not affect its Toronto Stock Exchange listing or compliance status there.
Organigram is a Canadian cannabis cultivator and processor with manufacturing operations across several provinces and a medical cannabis business in Germany.
NASDAQOGI shares closed at US$0.83 at 4:00 p.m. EST on Nov. 13, according to Google Finance. The announcement followed that close, so the price preceded public disclosure of the notice.
Compliance Requires Consecutive Qualifying Bids
Organigram said its initial compliance period lasts 180 calendar days under Rule 5810(c)(3)(A). To regain compliance, its closing bid must reach at least US$1 for a minimum of 10 consecutive business days during that period, subject to Nasdaq's discretion to require longer.
That requirement concerns consecutive qualifying closing bids, so an isolated session above the threshold would leave the company short of the stated test. The notice gives Organigram a period to address the deficiency while its Nasdaq Global Select Market listing remains in place.
"The Notification has no immediate effect on the listing or trading of the Company's common shares on the Nasdaq Global Select Market," Organigram said in its release.
A further 180-calendar-day compliance period is possible if Organigram misses the May deadline, but eligibility is conditional. The company said it would have to satisfy applicable Nasdaq requirements, including transferring its listing to the Nasdaq Capital Market.
If it does not qualify for additional time, the shares may become subject to delisting proceedings, with applicable appeal rights. The release describes a deficiency notice and a compliance process; it sets no appeal deadline.
Aurora Agreement Includes A Share Consideration Option
The notice arrives alongside Organigram's proposed acquisition of Aurora Cannabis Inc. TSEACB NASDAQACB. In their Nov. 3 joint announcement, the companies valued the transaction at approximately C$561 million on a fully diluted equity basis.
Aurora shareholders could elect cash, Organigram shares or a combination, subject to proration. The share-only option offers 5.8626 Organigram shares for each Aurora share, while the cash-only election is C$7.80.
Competing bidder Curaleaf Holdings, Inc. TSECURA OTCMKTSCURLF said on Nov. 10 it had received the required competition-law clearances in Germany and Canada. Its offer is scheduled to expire on Dec. 4 unless withdrawn or amended.
Read more: Curaleaf reports competition clearances for Aurora Cannabis bid
Elsewhere among Canadian cannabis companies, MediPharm Labs Corp. TSELABS OTCMKTSMEDIF FRAMLZ reported on Nov. 12 quarterly revenue of C$11.8 million. Revenue increased 18 per cent from the preceding quarter, driven by international medical sales.
Read more: MediPharm Labs posts second straight quarterly profit as revenue rises 18 per cent
Domestic retail demand provides a separate sector benchmark. Statistics Canada's Oct. 23 table put preliminary, seasonally adjusted cannabis retail sales at C$492 million for August 2026. Sales were down 0.3 per cent from July and up 4.4 per cent from a year earlier.
For Organigram's listing, the scheduled compliance deadline is May 10, 2027. By then, qualifying closing bids will determine whether it has met the initial price requirement; any further compliance period depends on Nasdaq's eligibility requirements.
