As a result of trading below $1 per share for 30 consecutive business days, Fairway Group Holdings is facing a potential delisting from the Nasdaq stock exchange.
Nasdaq informed the owner of New York's Fairway Markets that the company has 180 days, or until July 5, to regain compliance with its qualifications requiring its common shares close at a price of $1 or more for 10 consecutive business days. If Fairway is unable to regain compliance by that date it may transfer from the Nasdaq Global Market to the Nasdaq Capital Market and may be granted an additional 180 days if it provides written notice of its intention to cure its deficiency.
Beset by a heavy debt load and falling same-store sales, Fairway's stock has closed below $1 a share since Nov. 20. It closed Monday at 63 cents per share. Investors are concerned over near-term liquidity risks and the possibility that its efforts to raise additional capital would dilute shares, analysts said. If Fairway is unable to raise additional capital it would have to deliver on free-cash flow goals and deleverage gradually on its own.
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