Furniture Brands agrees to voluntarily delist from NYSE
August 23, 2013-- Furniture Today,
ST LOUIS, Mo. — Furniture Brands International announced today it has agreed to voluntarily delist its common stock from the New York Stock Exchange after determining it will not be able to meet the NYSE's continued listing criteria.
This criteria requires that the company maintain an average market capitalization not less than $50 million over a consecutive 30-day period. It also requires the company to maintain total stockholder equity of more than $50 million.
Market capitalization is determined by multiplying the number of outstanding shares by the company's stock price.
The company said its last day of trading of its common stock on the NYSE will be on or about Aug. 27. The next trading day, it will begin trading on the OTCQB.
According to investment website Investopedia, the OTCQB is a middle tier of the three marketplaces for trading over-the-counter stocks that is operated by the OTC Markets Group.
FBI was notified on July 10 that it faced a delisting on the NYSE. On July 15, the company said it intended to file a business plan within 45 days outlining how it was going to comply with the listing criteria within an 18-month period allowed by the NYSE.
Since then, the company's market capitalization has fallen below $15 million and the company has informed the NYSE it will not be submitting such a business plan.
This is the second time in the past year the company has been threatened with a delisting on the NYSE. It received such a notification this past December because its stock price had fallen below $1 for a 30-day consecutive trading period.
In late May, Furniture Brands enacted 1-for-7 reverse stock split partly to keeps its per share price above $1 and preserve its listing with NYSE.
Following the split, the price briefly approached $7, but it has been in steady decline. The stock closed today at $0.73.
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