Milk Makeup owner Waldencast is prone to losing its listing status.

The corporate, which went public in July 2022, just revealed that it has received a written notice from Nasdaq indicating that it was subject to delisting on account of its noncompliance of “timely filing of periodic reports with the Securities and Exchange Commission.”

Waldencast plans to request a hearing with Nasdaq over the matter. Such requests will stay any suspension or delisting motion for 22 days from the date of the Nasdaq notification, which got here on Oct. 31. The corporate can even request that the stay remain in effect through the hearing and the expiration of any additional extension period granted by the panel following the hearing. 

It added that it’s working to finish and file its Annual Report for 2022.

“There will be no assurance, nevertheless, that the corporate’s requests for an extra stay of any suspension motion by Nasdaq and the continued listing of its securities can be granted by the panel, or that the corporate will have the ability to evidence compliance with all applicable requirements for continued listing on the Nasdaq Capital Market should the panel grant the corporate an extension to accomplish that,” Waldencast said in a release.

Waldencast, which also owns Obagi Skincare, was founded by former L’Oréal executives Michel Brousset and Hind Sebti, alongside Felipe Dutra, as Waldencast Acquisition Corp., a special purpose acquisition company (also known as a SPAC). SPACs act as a shell company that investors pour money into via an initial public offering and people funds are then used to amass an organization that may inherit its stock exchange listing minus the normal time-consuming IPO process.