Milk Makeup’s owner Waldencast is at risk of being delisted from American stock exchange Nasdaq.
The beauty and wellness company has received a written notice from the US stock trading venue, warning of its removal due to noncompliance with the Securities and Exchange Commission (SEC’s) reporting rules.
These rules require the brand to file timely reports with the SEC, which it has reportedly failed to do.
In response, Waldencast has requested a meeting with Nasdaq’s Hearings Panel to discuss the situation.
Nasdaq’s rules stipulate that if a “timely request” for a hearing is made, suspension and delisting actions will be paused for 22 days from the date of the appeal.
“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,” Waldencast said in a statement.
It added that it is also not able to confirm that the evidence for its compliance will allow for a continued listing on the exchange, even if an extension is granted.
Waldencast stressed it is “diligently working” to complete and file its annual report for the financial year ended December 2022.
The holding company became a publicly listed business in July 2022.
This came 24 hours after it announced the completion of its merger with both Obagi Global Holdings and Milk Makeup.
Tim Coolican, CEO of Milk Makeup, said at the time that joining the public markets will allow the brand to “accelerate” its reach and impact.
Waldencast was founded by L’Oréal executives Michel Brousset and Hind Sebti in 2020.
