The Kraft Heinz Company received a standard notice from NASDAQ, stating that it failed to file its annual report on Form 10-K for the year ended December 29, 2018, with the U.S. Securities and Exchange Commission (SEC) in a timely manner. Therefore, the company is not in compliance with NASDAQ Listing Rule 5250(c)(1).
Kraft Heinz, in a press release, stated that it is working diligently to correct the matter, and it expects to file its Form 10-K in the coming weeks.
Under the NASDAQ listing rules, Kraft Heinz has 60 calendar days from the date of the notice to submit a plan to regain compliance. If the plan is accepted by NASDAQ, Kraft Heinz can be granted up to 180 calendar days from the Form 10-K's due date (as extended by Rule 12b-25 under the Securities Exchange Act of 1934, as amended), to regain compliance.
Kraft Heinz, the parent company of Oscar Mayer and Lunchables, is the sixth largest turkey company in the United States. According to the WATTAgNet Top Poultry Companies Database, Kraft Heinz slaughtered an estimated 332 million pounds of live turkeys in 2018, a decrease of 33 million pounds – or about 9 percent – from 2017.
SEC investigation
Earlier in 2019, when Kraft Heinz reported its quarterly financial results, the company revealed that it received a subpoena in October 2018 from the SEC associated with an investigation into the company's accounting policies, procedures, and internal controls related to its procurement function, including, but not limited to, agreements, side agreements, and changes or modifications to its agreements with its vendors.
Following this initial SEC document request, Kraft Heinz, along with external counsel, launched an investigation into the procurement area.
Kraft Heinz said at the time it is in the process of implementing certain improvements to its internal controls, and has taken other remedial measures. Kraft Heinz added that it is fully cooperating with the SEC.
