ABVE Stock Plunged 35% Today Despite Raising Profit Guidance – Did The Audit Delay Really Hurt?

The company cited illness-related resourcing constraints and the upcoming holiday period as the primary reasons for the delay in its fiscal 2025 audit.

• Above Food Ingredients has requested a 180-day extension from Nasdaq to file its Form 20-F.
• The company now expects the audit for the year ended Jan. 31, 2025, to be finalized shortly after the new year.
• It raised its profit forecast for the fiscal year ending Jan. 31, 2026, to more than $40 million, from its earlier projection of $30 million.

Above Food Ingredients Inc. (ABVE) shares sank more than 35% on Friday after the company disclosed a delay in completing its fiscal 2025 audit and confirmed it has requested a 180-day extension from Nasdaq.

The company cited illness-related resourcing constraints and the upcoming holiday period as the primary reasons for the audit delay. The setback comes just two weeks after Above Food said its audit was on track for completion, with plans to file its Form 20-F by December 12, and choosing not to apply for the additional 180-day extension. 

Above Food Ingredients now expects the audit for the year ended Jan. 31, 2025, to be finalized shortly after the new year. It raised its profit forecast for the fiscal year ending Jan. 31, 2026, now expecting earnings to surpass $40 million, up from its earlier projection of $30 million.

The company added that although fiscal 2025 results will reflect restructuring-related losses, the business enters fiscal 2026 on a significantly stronger footing.

Update On Palm Global Merger

Above Food said it continues to advance its strategic merger with Palm Global, with executive teams from both companies building operational frameworks, aligning strategies, and accelerating technical integration following leadership meetings in the U.A.E. last month. Management added that the restructuring efforts have already positioned the company for sustainable profitability.

The merger, first announced in July, will result in Above Food acquiring Palm Global, with Palm Global’s shareholders receiving 1.1 billion shares of Above Food in exchange for their current holdings.

How Did Stocktwits Users React?

Despite the sharp intraday drop, retail sentiment on Stocktwits turned ‘extremely bullish’ from ‘bullish’, accompanied by ‘high’ message volumes.

However, users expressed skepticism about the audit delay.

The stock has seen strong buying interest this year, gaining over 280%.

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