Joe’s Jeans announced Thursday that the company received a 180-day extension from The Nasdaq Stock Market to regain compliance with the Bid Price Rule by maintaining a closing bid price per share of its common stock at $1.00 per share or more for a minimum of 10 consecutive trading days.
The company received the letter on May 29 and its extension ends November 23. If Joe’s Jeans does not regain compliance with the Bid Price Rule—Nasdaq Listing Rule 5550(a)(2)—by the deadline, and does not timely implement a reverse stock split, Nasdaq will provide the company with written notification that its common stock will be de-listed.
Joe’s Jeans will have an opportunity at that time to appeal Nasdaq’s determination to de-list its common stock to the Nasdaq Hearings Panel.
Nasdaq’s decision to offer the additional period was based upon the brand meeting the continued listing requirement for market value of publicly held shares and all other applicable requirements for the initial listing on the Nasdaq Capital Market with the exception of the Bid Price Rule, and Joe’s Jeans written intention to cure the deficiency.
In a press release, Joe’s Jeans stated it intends to monitor the bid price of its common stock and will implement a reverse stock split, if necessary, if its common stock does not trade at a level likely to result in it regaining compliance by the end of its 180 extension.