Vintage Wine Estates, the US wine company, could be delisted from the Nasdaq if the value of its shares does not improve.
In an SEC filing issued on Tuesday (19 September), the California-based business said it had received a warning from Nasdaq that the company had breached a rule listed companies must follow.
Vintage Wine Estates said Nasdaq had contacted the business on 13 September indicating it had broken a listing regulation governing share prices over a 30-day period.
For 30 consecutive business days, Vintage Wine Estates’ closing bid price fell under the Nasdaq exchange minimum threshold of $1 a share.
The company has until 11 March to have ten consecutive business days in which its stock has a closing bid price of at least $1.
If Vintage Wine Estates does not hit that mark, the group may be eligible for consideration of a second 180-day compliance period if it meets the “continued listing requirement for market value of publicly held shares and all other initial listing standards for Nasdaq’s Global Market” other than the minimum bid price requirement, the filing read.
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“In addition, the company would also be required to notify Nasdaq of its intent to cure the minimum bid price deficiency. If the company fails to regain compliance with the Nasdaq continued listing standards, Nasdaq will provide notice that the company’s common stock will be subject to delisting.”
At that point, Vintage Wine Estates could appeal.
It added: “The notification has no immediate effect on the listing of the company’s common stock on Nasdaq. The company intends to monitor the closing bid price of its common stock and consider its available options in the event the closing bid price of its common stock remains below $1 per share.”
In July, Vintage Wine Estates appointed Moët Hennessy’s Seth Kaufman as CEO. Founder and former CEO Pat Roney moved to executive chairperson in February.
On the same day as announcing Kaufman’s appointment, the group predicted declining revenues for its fiscal 2024 despite “improving” margins.
It forecast revenue of between $250m and $270m for fiscal 2024. In 2022, Vintage Wine Estates’ annual revenue grew by 33% to $293.8m but the company generated a net loss for the year of $700,000.