Rave Restaurant Group, parent company of Pie Five and Pizza Inn, is no longer in danger of being delisted from Nasdaq, according to a recent financial filing.
The company received a warning from the financial market in July, saying Rave was no longer in compliance with its standard listing minimum of $2.5 million in stockholder equity. Rave also did not meet Nasdaq’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 recent weeks, however, Rave has earned $3.65 million from at-the-market sales of more than 2.5 million shares of its stock, the company said.
“As a result of the foregoing at-the-market sales of its common stock, the Company believes that, as of the date of this Report, it has regained compliance with Nasdaq’s continued listing standard,” the company said in its filing with the Securities and Exchange Commission.
But the struggling operator’s financial situation will continue to be monitored by Nasdaq.
“If the Company’s Form 10-Q for the fiscal quarter ending December 27, 2020 does not evidence such compliance, the Company’s common stock may be subject to delisting,” Rave noted.
Rave’s restaurants, fast-casual Pie Five and buffet chain Pizza Inn, have seen “dramatically reduced aggregate in-store retail sales” during the pandemic that have only been “modestly offset” by increased off-premise business, according to the parent company’s annual report, filed late last month.
The company closed 16 poor-performing Pie Five units during fiscal 2020 as well as four Pizza Inn stores. The company has closed its two company-owned Pie Five locations.
Rave has furloughed employees, reduced base salaries by 20% and slashed expenses.
Pie Five’s same-store sales fell 37.9% in Q4 and Pizza Inn’s same-store sales decreased 39% during the period.