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Pizza Inn, Pie five parent wins its latest delisting appeal

Struggling Rave Restaurant Group will be monitored for 180 days to ensure Nasdaq compliance.
Pie Five
Photo: Shutterstock

Rave Restaurant Group, the parent company of struggling Pie Five and Pizza Inn, has cleared its latest delisting notice from Nasdaq.

The operator received its second delisting warning in six months late last year, which it appealed.

The appeal was heard last week, and Rave provided evidence the company had regained compliance with Nasdaq’s $1 minimum price bid requirement, according to the company’s filing with the Securities and Exchange Commission.

Rave received a letter Tuesday, letting the operator know that it had regained compliance and that, while its stock was no longer subject to Nasdaq delisting, it would be monitored for 180 days to ensure its compliance with the market’s listing requirements.

As of mid-day Thursday, Rave’s stock was trading at $1.33.

The operator has struggled before and during the pandemic. It is currently embroiled in a legal battle with its former CEO, Scott Crane, who is seeking damages for alleged breach of contract, fraudulent inducement and statutory fraud.

Rave reported $2.1 million in revenue for the quarter ended Dec. 27, down about 25% from the same period the prior year.

Pizza Inn sales declined $5.1 million, or 24.6%, for the period ended Dec. 27. Pie Five systemwide sales fell $3.2 million, or 42.1%, for the quarter. During the same period last year, it had 54 open locations.

 

 

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