NEW YORK — Shoe Pavilion Inc. received notice from Nasdaq that its stock has failed to meet the minimum bid price requirements for continued listing on the exchange and has until December to regain compliance.
On Friday, the off-price footwear retailer said a June 19 letter from Nasdaq stated that if Shoe Pavilion doesn’t achieve a $1 minimum closing bid price by Dec. 16, Nasdaq plans to issue a written notice of delisting. If at any time before that date, the bid price of the company’s common stock closes at $1 a share or more for a minimum of 10 consecutive business days, the company will regain Nasdaq compliance. However, Nasdaq retains the right to require a $1-a-share minimum stock closing price for as many as 20 consecutive business days under certain circumstances.
If Shoe Pavilion does not meet the minimum bid price requirement and receives a delisting notice, the company may either appeal or apply to transfer its listing to the Nasdaq Capital Market. If it is ineligible to transfer, Shoe Pavilion’s securities will be delisted from the Nasdaq Stock Market — subject to its right to appeal the determination to a Nasdaq Listing Qualifications Panel.
Shares of Shoe Pavilion closed down 11 percent Monday at 47 cents.