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The Nasdaq Stock Market has warned BurgerFi International, Inc., that the fast-casual operator is out of compliance with rules required to be listed on the stock exchange, BurgerFi said Tuesday.

The chain of around 120 units based in Palm Beach, Fla., went public on Nasdaq last December via a special purpose acquisition company, or SPAC, and had scheduled the release of its quarterly and annual earnings on April 14. However it delayed that reporting after the Securities and Exchange Commission on April 12 published new guidelines for warrants issued with SPACs.

BurgerFi said it needed additional time to make sure that its financial statements that would be included in its annual report on form 10-K were in compliance with the new guidelines.

SPACs are a popular new approach to getting access to capital markets. They are formed by investors for the sole purpose of acquiring one or more companies — but usually one — to be traded publicly. They first start trading on a stock exchange and then acquire a company that takes the place of the SPAC on that exchange. Sometimes referred to as a “backdoor listing” because the company avoids making an initial public offering, it is now a trendy approach to going public.

The Nasdaq letter said BurgerFi is required to submit a plan to regain compliance within 60 days of the letter’s date, or June 15, 2021. Although Nasdaq could grant an extension of up to 180 days, BurgerFi said it intended to submit its compliance plan by June 15.

BurgerFi said the company’s shares and warrants would continue to trade under the symbols BFI and BFIW, respectively, in the meantime.

Contact Bret Thorn at [email protected] 

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