Sustainable footwear and apparel company Allbirds is at risk of being delisted from the Nasdaq Stock Market after its share price fell below the minimum bid price of US$1 per share for 30 consecutive days.
Nasdaq recently sent a notice warning that the retailer is no longer in compliance with its listing rule.
Allbirds’ Class A common stock will continue to be listed and traded on the stock exchange, but the company must regain compliance with the minimum bid price requirement within 180 days of the notice, or until September 30. Failure to do so could result in the company being delisted.
The company said it is considering various actions to regain compliance with the continued listing requirements, and that operations should not be affected by the notice.
Allbirds last month reported a 14.7 per cent decrease in net revenue to US$254.1 million ($418.4 million) for FY23, attributed to lower average selling price. The company’s net loss worsened to US$152.5 million and gross margin shrank to 41.0 per cent.
The firm appointed COO Joe Vernachio as CEO, effective March 15. Co-founder Joey Zwillinger remains on the board of directors and serves as a special advisor to the company.
