SAN DIEGO - Hempacco Co., Inc. (NASDAQ: HPCO), a company specializing in hemp-based smoking alternatives, has announced its return to compliance with Nasdaq's minimum bid price requirement. The company received confirmation from Nasdaq on March 26, 2024, following a review period from March 13, 2024, to March 26, 2024, during which Hempacco's stock maintained a closing bid price at or above $1.00 per share.
This development signifies the company's adherence to Nasdaq Listing Rule 5550(a)(2) and marks the resolution of prior concerns regarding bid price compliance. CEO Sandro Piancone expressed confidence in the company's direction, attributing this achievement to the team's efforts and investor trust. "We are excited about the future and remain dedicated to delivering value to our shareholders," Piancone said.
Hempacco operates in the manufacturing of smokables, hemp rolling paper, and cannabinoid sticks, as well as in smokable technology development. Its product portfolio includes The Real Stuff™ brand of functional smokables and rolling paper, along with partnerships for Cheech and Chong Hemp Cigarettes and Hemp Hop Smokables with Rick Ross, and a joint venture with Snoop Dogg for hemp-derived products.
The company aims to disrupt the traditional tobacco industry by offering herb and hemp-based alternatives to nicotine cigarettes, tackling a market that approaches a $1 trillion valuation. Hempacco's operational segments reflect this focus, with an emphasis on innovative smoking products and collaborations with notable figures in the entertainment industry.
The information for this article is based on a press release statement.
InvestingPro Insights
In light of Hempacco Co., Inc.'s recent return to Nasdaq compliance, a closer examination of the company's financial health and market performance reveals several challenges. According to InvestingPro, Hempacco operates with a significant debt burden and may have difficulty making interest payments on its debt. This is particularly concerning given the company's negative gross profit margin, which stands at -44.07% for the last twelve months as of Q3 2023.
InvestingPro data also shows that the company's stock has been under considerable pressure, trading near its 52-week low, with a price that is only 20.5% of the 52-week high. The stock has taken a substantial hit over various timeframes, including a one-week total price return of -28.32% and a one-year total price return of -74.29% as of the latest available data.
These financial headwinds are reflected in Hempacco's valuation metrics, with an adjusted P/E ratio of -0.74, indicating that the company is not currently profitable. Additionally, the InvestingPro Fair Value estimate for Hempacco is at 2.61 USD, suggesting potential upside from the previous close of 1.63 USD.
Investors interested in a more in-depth analysis can find additional InvestingPro Tips for Hempacco, including an assessment of the company's cash burn rate and short-term obligations. With these insights, shareholders and potential investors can make more informed decisions regarding their investment in Hempacco. For a full list of tips and to take advantage of a comprehensive analysis, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are currently 17 additional InvestingPro Tips available that delve deeper into the company's financial health and market performance.
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