Design Within Reach seeks NASDAQ delistingDesign Within Reach Inc. has notified the NASDAQ Stock Market of its intent to voluntarily delist its common stock from NASDAQ.
While the company reports that it has not received a formal notice from NASDAQ that it has failed to comply with listing standards, Design Within Reach said in a statement that it has struggled to maintain compliance with NASDAQ's minimum required bid price of $1 per share.
In addition, the benefits of maintaining a NASDAQ listing have declined in the company's eyes, as the average daily trading volume of its common stock on NASDAQ for the previous 12 months was approximately 18,014 shares, or approximately 0.124% of the company's outstanding shares of common stock.
The decision to delist is part of an overall strategy to conserve resources and improve cost-effectiveness. By doing so, the company will eliminate listing fees and be able to reduce costs associated with compliance efforts.
Design Within Reach anticipates that it will file a the necessary paperwork with Securities and Exchange Commission and NASDAQ on July 6 and that trading in its stock will be suspended at the open of business that day. The official delisting should become effective on July 16.
Following the delisting, the company's common stock is expected to be quoted on the Pink Sheet. Design Within Reach will continue to file periodic, quarterly and annual reports with the SEC.