Real Good Food Stock Dives On Nasdaq Delisting: Retail Mood Sours

The company warned that trading may ultimately move to OTC’s “Expert Market,” where quotes for the company’s common stock will no longer be available for public viewing.

Shares of The Real Good Food Company ($RGF) dived nearly 65% on Monday as the company announced it received a delisting notice from The Nasdaq, dampening retail sentiment.

Real Good Food, a maker of refrigerated foods, said it was no longer in compliance with Nasdaq Listing 5250(c)(1) for failure to file periodic financial reports.

Trading in its common stock on Nasdaq will be suspended on January 7.

Its common stock is expected to commence trading on the Pink Open Market operated by the OTC Markets Group Inc. (“OTC”), referred to as the “pink sheets,” commencing on January 7.

The company warned that trading may ultimately move to OTC’s “Expert Market,” where quotes for the company’s common stock will no longer be available for public viewing.

Retail sentiment on Stocktwits seemed bearish with commenters expressing surprise given its recent reverse stock split.

Last month, Real Good Food announced a 12-to-reverse stock split, sparking retail chatter on Stocktwits. According to a company statement, the stock split consisted of its Class A common stock, par value $0.0001, and Class B common stock, par value $0.0001, set to become effective at 5:00 pm ET on January 3. The stock split was to affect all holders of its common stock uniformly, the company said.

Real Good Food posted a loss per share of $0.50 for its third quarter, compared to the $0.20 that analysts expected.

Real Good Food stock is down nearly 70% year-to-date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<