Kona Grill Inc. received a stock market notice that threatens the struggling Asian-fusion chain with being delisted if it does not begin adhering to the market’s valuation rules.
Nasdaq sent Kona Grill a “deficiency notice” late last month, stating that the company has 180 days to bring the value of its publicly held shares to $15 million or more for at least 10 straight business days or it will be subject to losing its stock market listing.
The compliance deadline for the 44-unit Scottsdale, Ariz.-based restaurant is June 26.
Kona Grill’s stock price would need to be at least $1.89 per share for 10 consecutive business days to fall under Nasdaq’s parameters, according to a company filing with the Securities and Exchange Commission earlier this month. It was priced at $1.23 per share midday Tuesday, down significantly from a high of $3.00 per share in May.
In November, the company named founder Marcus Jundt and restaurateur Steve Schussler as co-CEOs, just days after it reported a same-store sales slide of 14.1% for the quarter ended Sept. 30.