Boxed to be delisted from New York Stock Exchange

Warehouse club-style e-tailer Boxed Inc. is slated to be delisted from the New York Stock Exchange (NYSE) in the wake of filing for Chapter 11 bankruptcy protection.

Late Sunday, New York-based Boxed announced plans to sell its Spresso technology unit and wind down its retail business under the bankruptcy filing. After the market close on Monday, NYSE said it had suspended trading of Boxed’s common stock (ticker symbol BOXD) and will begin delisting proceedings.

“NYSE Regulation reached its decision that the company is no longer suitable for listing … after the company’s April 3, 2023, disclosure that the company has filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware,” NYSE stated on Monday. “In reaching its delisting determination, NYSE Regulation noted the uncertainty as to the ultimate effect of this process on the value of the company’s common stock.”

Boxed common shares stood at 19 cents on Monday with the cessation of trading. Its stock price had dropped from 42 cents to 24 cents on March 15, when the company announced that it was considering a bankruptcy filing as it worked to bolster financing and find a buyer. Boxed shares’ 52-week range was 10 cents to $12.45 as of late trading on Tuesday. The last time Boxed’s stock had closed at $1 per share was on Sept. 20 ($1.03).

On March 17, NYSE also had reported delisting proceedings for Boxed warrants (BOXD WS), citing “abnormally low” price levels.

Financially pressed Boxed had announced in early January that it was exploring a potential sale of the company, among other strategic alternatives. A few months earlier, the e-tailer had received delisting warnings from NYSE as its stock price and market capitalization fell below required levels. To rectify the situation, Boxed said at the time that it would evaluate various options, including a reverse stock split. Then later in January, Boxed reported that it had sourced up to $20 million in new funding, and the company reiterated that it was continuing to seek a possible buyer.

Boxed in June 2021 unveiled plans to go public through a merger with special purpose acquisition company (SPAC) Seven Oaks Acquisition Corp. The new company, Boxed Inc., began trading on the NYSE effective Dec. 9, 2021, under the symbols BOXD (common stock) and BOXD WS (warrants).