For the second time in six months, the parent company of Pie Five and Pizza Inn has received notice that it is in danger of being removed from Nasdaq’s listings.
Rave Restaurant Group’s most-recent delisting notice, filed last week, said the company had failed to comply with Nasdaq’s standard of maintaining a minimum price of $1 per share. As of Wednesday morning, Rave’s stock was trading at around 90 cents. It last traded over $1 per share in October.
Rave appealed the delisting notice on Monday, according to a Securities and Exchange Commission filing. The appeal stays Nasdaq’s delisting process until a hearing panel rules on the case, typically withing 45 days.
Rave “intends to diligently pursue its appeal to Nasdaq,” the company said in its SEC filing.
“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,” Rave noted.
Rave received a delisting notice from Nasdaq in July, warning that the operator was no longer in compliance with the financial market’s standard minimum of $2.5 million in stockholder equity to continue being listed. Nor did the company meet the market’s requirements of having at least $35 million in listed securities or $500,000 of net income for either the most recent fiscal year or two of the last three most recent fiscal years.
In October, Rave reported it had cleared that delisting threat by earning $3.65 million from at-the-market sales of more than 2.5 million shares of its stock.
Both Pie Five and Pizza Inn were struggling pre-pandemic. But the crisis has heightened those issues.
Rave continues to close units of both chains, ending Q1 with 146 Pizza Inn locations and 39 Pie Five restaurants. That’s a decrease of nine Pizza Inn units and 19 Pie Five stores from the previous year.
During Q1, Pizza Inn’s same-store sales tumbled 22% and Pie Five’s fell 23%.