The potential delisting will depend on a future hearing.
Rave Restaurant Group, the parent of Pie Five and Pizza Inn, has requested an appeal from Nasdaq after failing to meet listing standards for a second time, according to an SEC filing.
Nasdaq sent the delisting notice on December 29 and said Rave failed to reach a minimum of $1 per share. The company was trading at 89 cents per share as of late Wednesday afternoon. On Monday, Rave requested a hearing to appeal the delisting, which is typically scheduled within 45 days.
“The Company intends to diligently pursue its appeal to Nasdaq. However, there can be no assurance that the Company’s appeal will be successful or that the Company will be able to evidence compliance within any extension period granted by the Hearing Panel,” Rave said in the filing. "If the Company’s appeal is denied or it fails to timely regain compliance with Nasdaq’s continued listing standards, the common stock of the Company will be subject to delisting on The Nasdaq Capital Market.”
Rave’s first delisting notice came during the summer. On July 1, 2020, Rave received notice that based on its Q3 financials, the brand was not in compliance with Nasdaq’s listing standards because stockholder equity was below $2.5 million. It also didn’t meet the alternative standards of at least $35 million in listed securities or net income of $500,000 for the most recently completed fiscal year or two of the three most recently completed fiscal years.
Rave’s said in October that it regained compliance by selling 2.5 million shares in at-the-market sales, resulting in earnings of $3.65 million.
The company has struggled during the COVID pandemic. Pizza Inn shed 11 units (five domestic and six international) in the first quarter, which ended September 27. Domestic same-store sales fell 22 percent for Pizza Inn and 23 percent at sister chain Pie Five. Rave’s income before taxes was $78,000 compared to $310,000 last year. Earnings per share were $0.00 versus $0.01 in Q1 2019. Revenues decreased 34 percent, year-over-year, in Q1 from $2.9 million to $1.9 million.