Understanding Primis Financial's Delinquency Notice
On August 21, 2024, Primis Financial Corp. received a notification from Nasdaq concerning non-compliance with Nasdaq Listing Rule 5250(c)(1). This rule mandates timely filing of all required financial reports with the SEC (Securities and Exchange Commission). Primis Financial missed filing deadlines for its Quarterly Report for the periods ending June 30, 2024, and March 31, 2024, as well as the Annual Report for the year ending December 31, 2023. However, it's important to note that this notification does not immediately affect the company's stock listing on Nasdaq.
Why the Delay?
The company disclosed that it needed extra time for its financial filings due to the restatement of certain financial statements. A restatement involves revising previously issued financial statements to correct errors. This revision process was done after discussions with the Office of the Chief Accountant at the SEC, ensuring transparency and accuracy.
Nasdaq's Compliance Extension
Recognizing the company's situation, Nasdaq has extended the deadline for Primis Financial to achieve compliance. The new deadline is September 30, 2024. Primis Financial plans to update Nasdaq on its progress by September 5, 2024. Efforts are ongoing to complete and file these reports promptly, aiming to meet the compliance deadline.
Financial Snapshot of Primis Financial
As of June 30, 2024, Primis Financial reported $4.0 billion in total assets, $3.3 billion in loans, and $3.3 billion in deposits. Through its 24 branches in Virginia and Maryland, and digital platforms, Primis Bank delivers a variety of financial services to individual clients and small-to-medium businesses.
Forward-Looking Statements and Risks
The company's announcement included forward-looking statements, which are projections about future events. These statements can be influenced by numerous factors, including delays in finalizing financial statements, inaccuracies, or potential penalties. Additionally, there's a risk that failure to meet the deadlines could lead to Nasdaq delisting the company. Primis Financial has stated it will not update these forward-looking statements unless necessary.
Understanding the Risks
For investors and stakeholders, it's crucial to understand that forward-looking statements are subject to risks and uncertainties. These can result in actual outcomes differing significantly from expectations. Therefore, while these statements provide insight into the company's expectations, they should be interpreted with caution.
For those unfamiliar with some of the terms, here's a simple breakdown:
- Nasdaq Listing Rule 5250(c)(1): A rule requiring companies listed on Nasdaq to file timely financial reports with the SEC.
- Restatement: Correcting previously issued financial statements to fix errors.
- Forward-Looking Statements: Predictions about future events or performance, subject to change based on various risk factors.
Primis Financial is committed to resolving its compliance issues and continuing its operations without interruption. The company is working diligently to ensure all necessary filings are completed promptly, aiming to maintain its position on Nasdaq.
