Milk Makeup owner Waldencast is at risk of losing its listing status.
The company, which went public in July 2022, just revealed that it has received a written notice from Nasdaq indicating that it was subject to delisting due to its noncompliance of “timely filing of periodic reports with the Securities and Exchange Commission.”
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Waldencast plans to request a hearing with Nasdaq over the matter. Such requests will stay any suspension or delisting action for 22 days from the date of the Nasdaq notification, which came on Oct. 31. The company will also request that the stay remain in effect through the hearing and the expiration of any additional extension period granted by the panel following the hearing.
It added that it is working to complete and file its Annual Report for 2022.
“There can be no assurance, however, that the company’s requests for a further stay of any suspension action by Nasdaq and the continued listing of its securities will be granted by the panel, or that the company will be able to evidence compliance with all applicable requirements for continued listing on the Nasdaq Capital Market should the panel grant the company an extension to do so,” Waldencast said in a release.
Waldencast, which also owns Obagi Skincare, was founded by former L’Oréal executives Michel Brousset and Hind Sebti, alongside Felipe Dutra, as Waldencast Acquisition Corp., a special purpose acquisition company (often referred to as a SPAC). SPACs act as a shell company that investors pour money into via an initial public offering and those funds are then used to acquire a company that will inherit its stock exchange listing minus the traditional time-consuming IPO process.
A spokesperson for Waldencast said: “We are working diligently with our advisors to present our plan of compliance to Nasdaq and look forward to presenting it to the Nasdaq listing board. The receipt of the notice does not affect the company’s business or operations and we continue to be excited about the prospects of our brands.”
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