For the second time in six months, Pizza Inn and Pie Five parent company Rave Restaurant Group has received a delisting warning from Nasdaq after the company’s stock market listing fell below the $1 per share minimum bid price, according to a Dec. 29 filing with the Securities and Exchange Commission. On Jan. 4, Rave Restaurant Group submitted a hearing request form to appeal the delisting notice.
“The company intends to diligently pursue its appeal to Nasdaq,” the 8-K form said. “However, there can be no assurance that the company’s appeal will be successful or that the company will be able to evidence compliance within any extension period granted by the hearing panel. If the company’s appeal is denied or it fails to timely regain compliance with Nasdaq’s continued listing standards, the common stock of the company will be subject to delisting on the Nasdaq market.”
This is not the first time Rave Restaurant Group has struggled to meet the minimum listing requirements this year. In July, the company was issued a delisting warning notice from Nasdaq for failing to meet the standard minimum of $2.5 million in stockholder equity to continue being listed on the stock market.
By the company’s first quarter earnings reported in November, Rave was no longer in danger of being delisted. According to an 8-K filed with the Securities and Exchange Commission in October, Rave Restaurant Group reported earning $3.65 million from selling 2.5 million shares before the end of the first quarter.
The appeal will be heard by a hearing panel within 45 days. Nation’s Restaurant News reached out to Rave Restaurant Group for a statement.
Rave Restaurant Group’s income before taxes was $78,000 for the first quarter of 2021 compared to $310,000 for the same period last year, or $0.00 per share compared with $0.01 the same quarter the year prior.
As of Sept. 27, 2020, Rave Restaurant Group had 217 units in both brands internationally.
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