The Nasdaq Stock Market granted Joe’s Jeans Inc. a 180-day grace period to regain compliance with Nasdaq’s $1 minimum bid price requirement, extending the deadline to June 4 from Dec. 5.
This story first appeared in the December 14, 2011 issue of WWD. Subscribe Today.
Shares of the Los Angeles-based jeans marketer Tuesday closed at 56 cents, down 2 cents or 3.5 percent. The stock reached a 52-week high of $1.73 on Jan. 14 but hasn’t traded at over $1 since May 2 and reached a 52-week low of 50 cents on Nov. 10. It reported a $2 million loss for the third quarter on a 5.4 percent sales decline, to $24.2 million, on Oct. 11.
Marc Crossman, president and chief executive officer of Joe’s Jeans, said, “This grace period gives us time to increase our valuation through positive operating results in order to justify our stock trading above the $1 threshold for the required period.”
He also said that, during the grace period, the company expects to “release our fourth-quarter 2011 earnings report and articulate our growth strategy for 2012. We will also release our first-quarter 2012 earnings report.”
Among the options discussed when Joe’s received its first notification, in June, was a reverse stock split, which would reduce the number of shares outstanding while proportionately increasing the value of an individual share.
According to Joe’s Jeans, the company was eligible for the additional grace period because it met the initial listing requirements for the Nasdaq Capital Market, except for maintaining a closing bid price of a minimum of $1 per share.
The denim company noted that if the firm doesn’t “regain compliance during this 180-day grace period, [Joe’s Jeans] will request a hearing to present a plan for compliance.”
Crossman said, “Because we otherwise meet all of the other listing requirements, we remain committed to maintaining our Nasdaq listing. Further, [the notification] has no immediate effect on the listing of our common stock at this time.”