Pacific Sunwear of California, Inc. said it received a warning from NASDAQ that it's market value was trending lower than the minimum level for continued listing, according to a regulatory filing.
NASDAQ in a note sent Oct. 29 noted that for the last 30 consecutive business days, the company had not met the $15 million minimum market value of publicly held shares continued listing standard as required by NASDAQ Listing Rule 5450(b)(3)(C). As provided in the NASDAQ rules, the company has 180 calendar days, or until April 26, 2016, to regain compliance. To regain compliance, the market value of the company's publicly held shares must be $15 million or more for a minimum of ten consecutive business days at any time prior to April 26, 2016.
If the company has not regained compliance prior to April 26, 2016, the company will consider whether to apply to transfer its common stock to the NASDAQ Capital Market. The ability to transfer to the NASDAQ Capital Market would be dependent upon the company meeting the applicable listing requirements for that exchange. If the company is eligible to, and decides to, transition to the NASDAQ Capital Market, the transition would not impact the company's obligation to file periodic reports and other reports with the Securities and Exchange Commission under applicable federal securities laws.
If the company does not transfer its securities to the NASDAQ Capital Market or regain compliance with Rule 5450(b)(3)(C) by April 26, 2016, the NASDAQ staff will issue a notice that its securities are subject to delisting. The company then has the right to appeal the decision to a NASDAQ Listing Qualifications Panel.
The company has not yet determined what other actions it may pursue to regain compliance with the above NASDAQ continued listing requirement, and there can be no assurance that the company will be able to regain compliance with such requirement.