More dark clouds gathered above Fairway Group Holdings late Tuesday when the company said it has received a second warning of a potential stock delisting by the Nasdaq exchange — this time for failing to maintain a minimum market capitalization of $15 million for three consecutive business days.
In January, the parent of New York’s Fairway Market chain was informed that it was in violation of listing rules requiring for trading below $1 per share for 30 consecutive days. The company said then it needed to maintain a stock price at above $1 per share for 10 consecutive business days or face a potential delisting July 5.
The latest warning would require Fairway to regain market value of outstanding shares of more than $15 million for 10 consecutive business days by Aug. 9.
Beset by debts, slowing sales and heavy losses, Fairway has seen its stock trade at historic lows for months, and has been trading at under $1 per share since Nov. 20. Its stock on Tuesday closed at 31 cents per share, resulting in a market capitalization of $13.65 million.
In a disclosure to the Securities and Exchange Commission, the company said it was considering “all available options.” Officials earlier this month said the company was seeking an equity infusion so as to cure a potential debt covenant violation in April.
Article By: Supermarket News