JUPITER WELLNESS, INC. : Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing (form 8-K)

Published: 2022-01-26 08:47:47 ET JUPW

Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

Jupiter Wellness, Inc. (the "Company") has been communicating with the Listing Qualifications Department of the Nasdaq Stock Market LLC ("Nasdaq") regarding an issue of inadvertent non-compliance with Nasdaq Listing Rule 5635(c).

Listing Rule 5635(c) requires stockholder approval prior to the issuance of securities when a stock option or purchase plan is to be established or materially amended or other equity compensation arrangement made or materially amended, pursuant to which stock may be acquired by officers, directors, employees or consultants.

As previously disclosed in the Company's Quarterly Report on Form 10-Q filed on November 12, 2021, during the first nine months of 2021 the Company issued a total of 1,020,000 shares of common stock to consultants (the "Consulting Share Awards") not pursuant to the existing 2021 Equity Incentive Plan (the "2021 Equity Plan"). The Company issued the Consulting Share Awards under the good faith belief that the Consulting Share Awards were not considered to be Form S-8 eligible.

Following communications with Nasdaq and internal investigation, in January 2022, the Company determined that 180,000 shares of common stock, out of the total Consulting Stock Awards issued, that were issued to three consultants, Greentree Financial (100,000 shares), Inc., L&H Inc. (20,000 shares), and Tee 2 Green Enterprises, Ltd. (60,000 shares), during the relevant period (the "Share Grants"), should have been issued pursuant to the 2021 Equity Plan because the Share Grants were considered to be S-8 eligible. As a result, the inadvertent issuance of the Share Grants to the mentioned-above three consultants was not made in compliance with Listing Rule 5635(c). The Company has notified Nasdaq that the Company's Board of Directors (the "Board") has approved the reallocation of the Share Grants to be accounted for as if they were originally issued under the 2021 Equity Plan, and has made the corresponding change to the Company's books and records.

Given that the 2021 Equity Plan has previously been exercised in full, to allow for the reallocation of the Share Grants under the 2021 Equity Plan, on January 17, 2022, the Board determined that 100,000 options that have previously been issued under the 2021 Equity Plan to Mr. Brian John, Chief Executive Officer and director of the Company, and 100,000 options issued to Dr. Glynn Wilson, Chief Science Officer and Chairman of the Board, be cancelled, a revocation to which Messrs. John and Wilson have agreed.

On January 20, 202, the Company received a letter from Nasdaq stating that, because the Company made the Share Grants not pursuant to the 2021 Equity Plan despite them considered to be S-8 eligible, Nasdaq had determined that the Company did not comply with Listing Rule 5635(c). Nasdaq further determined that, as a result of the corrective action taken, the Company has regained compliance with the Rule and that this matter is now closed.