Cosi Inc. has announced that on March 16 the company received a letter from the Nasdaq staff stating that the company has failed to comply with the $1.00 minimum bid price required for the continued listing of its common stock on The Nasdaq Global Market. As a result, the company's common stock is subject to delisting. The letter also stated that the company may appeal the staff determination to a Nasdaq Listing Qualifications Panel.
The company intends to appeal the staff determination to a Nasdaq Listing Qualifications Panel. Although there can be no assurance that the panel will grant the company's request for continued listing, the appeal will allow the stock to remain on The Nasdaq Global Market pending the panel's decision.
The company also intends to present a plan that includes a discussion of the events that it believes will enable it to regain compliance with Nasdaq Listing Rule 5450(a)(1), which will include a commitment to effect a reverse stock split, if necessary. In connection with this plan, the Board of Directors has authorized submitting a proposal to the company's stockholders at its annual meeting asking the shareholders to approve a reverse split. If approved, the company believes that will satisfy Nasdaq's minimum bid price per share requirement. If approved, the reverse stock split would only be effected if the company has not otherwise satisfied the NASDAQ minimum price requirement prior to the split.
