Joann Inc. has been warned that it could be delisted from Nasdaq due to its stock falling below $1 per share for 30 consecutive business days.
The stock exchange company sent a notice on Oct. 19 to Joann, which is headquartered in Hudson, stating that the fabric and craft item supplier "is not in compliance with the requirement to maintain a minimum closing bid price of $1 per share."
Joann now has until April 16 to regain compliance with Nasdaq.
"If at any time before April 16, 2024 the bid price of the common stock closes at or above $1 per share for a minimum of 10 consecutive trading days, Nasdaq will provide written notification that the Company has achieved compliance with the bid price requirement and the matter will be closed, unless Nasdaq exercises its discretion to extend the 10-day period," the notice stated.
A representative from Joann confirmed the company received the notice, adding that the company was still listed on the Nasdaq Global Market under the ticker JOAN. No further statement was given.
If Joann does not meet the criteria by the deadline, it still could be eligible for an additional 180 calendar days to regain compliance, according to the notice. However, if Nasdaq feels the fabric and craft store company can't fix its deficiency, its stock would be subject to delisting.
According to information from Joann's website, as of Wednesday afternoon, the company's stock was trading at 56 cents.
On July 20, Joann received two additional written notices from Nasdaq that the company is not in compliance with the requirement to maintain a minimum market value of listed securities of at least $50 million and the requirement to maintain a minimum market value of publicly held listed securities of at least $15 million. It has until Jan. 16 to regain compliance in these areas.
Last month, CreditRiskMonitor listed Joann Inc. among U.S. companies at high risk of filing for bankruptcy this year.
And in September, Joann confirmed it would lay off an undisclosed number of employees at its headquarters, just a month after the company announced it would hire more than 5,000 employees nationwide.
Reporter April Helms can be reached at [email protected]