Kona Grill, which last week said it might be forced to declare bankruptcy, received notice from Nasdaq that its stock will no longer be traded if the struggling company does not pay its listing fees by Thursday morning.
The Scottsdale, Ariz.-based Asian-fusion chain was already under threat of stock market delisting after receiving a “deficiency notice” from Nasdaq late last year. Under that warning, Kona Grill had until June 26 to bring the value of its publicly held shares to $15 million or more for at least 10 straight business days.
Kona Grill’s stock, which was trading at $3 per share last May, has been plunging downward. It was trading at 24 cents per share early Tuesday.
The company did not respond to a request for comment on the Nasdaq notice.
“If the Company elects not to appeal, then trading of the Company’s common stock will be suspended at the opening of business on April 25, 2019,” the delisting notice reads.
The company, which reported $33.2 million in secured debt, said in federal securities filings last week that it was discussing alternatives with its lenders and that it might have to file for Chapter 11 bankruptcy protection. The casual-dining chain, which has closed multiple units in recent weeks, appointed Jonathan Tibus, managing director of Alvarez & Marsal, as CEO. Tibus’ firm is known for representing restaurants as they file for bankruptcy protection.
Tibus replaces Kona Grill co-founder Marcus Jundt, who resigned last month after four months as CEO. Tibus’ appointment marks the fifth CEO change for the troubled company in less than a year.
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