Così Inc. has received notice that it could be removed from the Nasdaq exchange due to its persistently low stock price, the company said Tuesday.
The company’s price has been below $1 per share for at least 30 consecutive business days, which triggered the notice. Così has 180 business days to get its price back over $1 per share to keep its listing.
In a release, the company said that it “will consider all available options to resolve the efficiency and regain compliance with the Nasdaq minimum bid price requirement.”
The company’s stock price has been in a steady decline for much of the year, since hitting a 52-week high of $2.94 per share in February. The stock price closed Tuesday at 48 cents per share, an 83-percent decline in value.
Delisting can be difficult for publicly traded companies because they are then traded over the counter, where trading is less fluid and done by appointment, which generally results in massive price swings. But companies also get less attention when traded over the counter.
Yet it’s also uncommon. Companies have a lot of time to fix the issues that led to the delisting. Companies can also appeal the decision and qualify for a grace period.
Così has been on the receiving end of multiple delisting notices over its stock price. It received a notice in 2011, but remained on the Nasdaq market due to a sale surge that led its stock price to rise to more than $1 per share. It received another such notice in 2013 and tried a reverse stock split to get that price in compliance.
Così has reported relatively weak sales this year, including a 0.3-percent same-store sales decline in the third quarter ended Sept. 28. The company recorded a $3.9 million net loss in the quarter, or 8 cents per share.
Contact Jonathan Maze at [email protected].
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