Environmentally sustainable brand Allbirds faces a potentially significant setback, which could have a detrimental impact on investors, after being threatened with delisting from the US Nasdaq stock market.
The warning came after the apparel company's share price fell below the minimum bid price of USD $1 per share for over 30 consecutive days.
As this is one of Nasdaq's listing rules, Allbirds was sent an official warning notice.
To continue trading of Allbird’s Class A common stock in the stock exchange, the company must urgently regain compliance with the minimum bid price within 180 days of notice. The due date for this is 30 September; failure to do so will result in the company's official delisting.
Allbirds have stated that they are considering various actions to regain compliance, hoping the notice does not affect operations.
As of March 2024, Allbirds reported a 14.7 percent decrease in net revenue, reaching USD 254.1 million for FY23. This was attributed to a lower average selling price.
The company's net worsened to USD 152.5 million, with a gross margin of 41 percent.
Joe Vernachio was recently appointed CEO, with co-founder Joey Zwillinger stepping down but remaining on the board of directors.
Vernachio will execute Allbirds' turnaround plan, which includes closing several locations worldwide.
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