QVC Group Enacts Reverse Stock Split, Initiates Voluntary Delisting from the Exchange
QVC Group Steps Up Efforts to Maintain Public Trading
The retail giant, QVC Group, is making a series of moves to bypass getting kicked off Nasdaq.
Shareholders this week approved a whopping 1-for-50 reverse stock split, according to a Friday press release, in an effort to meet the minimum bid price requirement of $1.00 per share for continued listing on the Nasdaq Capital Market. The action will take place after market hours on Thursday.
Before you start wondering why QVC Group is doing this, let's remind you that they shifted from the Nasdaq Global Select Market to the Capital Market in late 2024 and had warned at the time that a reverse stock split might be on the table to regain compliance. Back then, the company was operating under its old name, Qurate Retail Group, and was first flagged for potential delisting last June.
The reverse stock split may not be enough to keep QVC Group compliant with Nasdaq's continued listing requirements, leading the company to pursue a voluntary delisting from the Nasdaq Capital Market. They're aiming to exit on or around May 27.
Where will QVC Group end up after the shake-up? In the OTCQB Venture Market, a trading platform managed by OTC Markets Group, Inc. The transfer is contingent upon typical conditions and regulatory approval, and there's no guarantee that the stock will make the move, according to the company. They'll keep the public updated on the transition details in due time.
What about QVC Group's financial performance? They reported a 10% drop in year-over-year revenue for the first quarter this week. The decline in their Cornerstone division, which includes four brands like Garnet Hill and Frontgate, was even steeper at 13%, a result of the continuing housing market slump.
In clear language:
- QVC Group intends to increase their share price with a 1-for-50 reverse stock split to meet Nasdaq requirements.
- Despite the reverse stock split, QVC might not reach Nasdaq’s continued listing criteria.
- The company’s Board has approved a voluntary delisting from Nasdaq.
- Post-delisting, QVC Group's shares will be traded on the OTCQB Venture Market.
- A delisting notification (Form 25) is planned for filing around May 27, 2025. The ticker symbol QVCGB remains unchanged, and shareholders do not need to take action.
- QVC Group aims to maintain a public trading market for their shares via OTCQB while tackling Nasdaq's listing conditions hurdles.
This strategy will help QVC Group dodge the penalties of an involuntary delisting and keep shareholder liquidity in an alternative public trading environment.
- QVC Group will execute a 1-for-50 reverse stock split to enhance their share price and adhere to Nasdaq's minimum bid price requirement.
- Given the reverse stock split may not guarantee compliant status with Nasdaq's continued listing criteria, QVC Group's Board has authorised a voluntary delisting from the Nasdaq Capital Market.
- Upon completion of the delisting process, QVC Group's shares will be available for trading on the OTCQB Venture Market. The company aims to finalise the delisting by May 27, 2025, with no change in the ticker symbol (QVCGB), and no action required from shareholders.
