Charlotte restaurant owner and operator Chanticleer Holdings said Tuesday its stock is in danger of being delisted from the Nasdaq Stock Market for failing to meet the exchange’s share-price minimums.
According to a document filed with the Securities and Exchange Commission, Nasdaq told Chanticleer on Feb. 18 that its common stock had closed below $1 a share for 30 consecutive business days. Under Nasdaq rules, such performance places a company out of compliance with requirements for continued listing on the Nasdaq Capital Market.
Chanticleer, founded in 2005, is a franchisee owner of Hooters restaurants in the U.S. and overseas.
Since 2013, it has been broadening its focus to other brands, beginning with its purchase that year of Charlotte-based American Roadside Burgers. Also in 2013, Chanticleer bought a majority interest in the Charlotte-based Just Fresh restaurant chain. The company also owns and operates BGR the Burger Joint and Little Big Burger.
To regain compliance, Chanticleer has until Aug. 16 for its stock to close at $1 a share or higher for at least 10 consecutive business days, according to the filing.
If Chanticleer fails to meet that requirement but complies with all other standards for initial listing on the Nasdaq Capital Market, it may be given until Feb. 12, 2017, for its share price to be in compliance, the filing says.
In an email, Chanticleer CEO Mike Pruitt cited a “tough time for our sector recently but we remain laser focus(ed) on executing.”
Pruitt said he is confident the company’s share price will be able to meet Nasdaq’s requirements, “given our anticipated revenue growth, margin improvement and improving profitability.” He also noted his company is in compliance with Nasdaq’s other requirements.
“We don’t see meeting Nasdaq’s timeline will be an issue,” Pruitt said.
Chanticleer shares closed at 83 cents on Tuesday, down 17 percent for the year.