Operations

Pizza Inn, Pie Five parent working to stay listed on Nasdaq

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July 9, 2020

Dallas-based Rave Restaurant Group has been struggling, but now the U.S. Securities and Exchange Commission has weighed in on the matter, issuing the parent company of Pie Five and Pizza Inn a form 8K, the official notice that the company is at risk of being delisted from Nasdaq.

On July 1, Nasdaq told the company that based on its most recent quarterly report for the period that ended March 29, it was longer complying with Nasdaq's continued listing standard for minimum stockholders' equity of at least $2.5 million. The notice further advised that, as of July 1, the company wasn't meeting the alternative continued listing standards of either $35 million in market value of listed securities or $0.5 million in net income from continuing operations for the most recent fiscal year (or two of the three most recent fiscal years), according to the SEC filing.

Rave Restaurant Group has until Aug. 14 (45 calendar days) to provide authorities with a plan to get back into compliance; that would give them a 180-day extension to comply with the listing standards. The notice from Nasdaq has no immediate effect on the listing of the company's common stock on the Nasdaq Capital Market.

Rave told the SEC that it would submit a plan in time and work toward compliance, but ultimately final judgment is up to the Nasdaq.

At the end of June, Rave reported a brutal third quarter ending March 29, with Pie Five domestic comp-store sales down more than 21%, while comp sales at Pizza Inn dropped more than 7% compared with the previous year's third quarter.

The company has not responded to this website's request for additional information or comment.