Farmmi Soars 53% on Strong Sales in January
While it is not in compliance with Nasdaq, Farmmi hopes today’s boost will help keep its shares higher than the required $1 per ADS minimum.
The stock in Farmmi Inc. (Nasdaq: FAMI) skyrocketed 53% to $1.18 per American depositary share in early trading Thursday after the company announced a strong increase in last month's sales.
The Lishui-based agricultural products supplier said in a statement today that sales volume for January has increased by 42% compared to the same month last year. Number of orders was up 44% year-over-year in January.
The global trading platform said the improvements reflect higher demand in some key markets, including Japan, the United States, Canada, Europe, Israel, China, and Turkey.
"We are encouraged with the healthy growth our business achieved in January. We will work to build on this momentum as we move through 2020 and continue to execute on our long-term growth plan as we leverage our premium product quality, highly experienced employee base, local production facilities and strong supply chain relationships," Yefang Zhang, the chairwoman and chief executive officer of Farmmi, said in a statement today.
While today's news helped boost Farmmi's stock, the company currently is not in compliance with Nasdaq. Earlier this week, Farmmi received warning from the stock exchange for not meeting the minimum bidding price of $1 per ADS over a 30-day period.
Since the trade war began in July 2018, Farmmi shares started to tumble. The company, which once traded as high as $10.32 per ADS, saw its stock fall as low as $2.68 per ADS in the ensuing month. Farmmi now hopes to rebound after a tough couple of years in the markets.
Established in 2003, Farmmi operates through an internet platform, offline experience shops, family farms, and factories. Its online sales platform, Farmmi mall has more than 50,000 members, according to its website.