QVC Group is taking several steps to avoid being delisted from Nasdaq.
Shareholders this week approved a reverse stock split at a ratio of 1-for-50, according to a Friday press release. The process is being enacted to regain compliance with a minimum bid price requirement of $1.00 per share for a continued listing on the Nasdaq Capital Market. The split will take place on Thursday after markets close.
The live shopping company transferred from the Nasdaq Global Select Market to the Capital Market in late 2024 and warned at the time that it may enact a reverse stock split to regain compliance. QVC Group, which then went by the name Qurate Retail Group, was first warned of a possible delisting last June.
As a result of the reverse stock split, QVC doesn’t expect that it will meet the continued listing requirements of the Nasdaq Capital Market. Therefore the company will pursue a voluntary delisting from that market, which it expects will take place on or around May 27.
QVC Group has applied for its stock to be listed on the OTCQB Venture Market. The completion of the transition is subject to customary conditions and regulatory approval, and there “can be no assurance” that the stock will be listed on the OTC, according to the company. More information regarding the transfer will be provided at a later date.
QVC Group, which owns QVC and HSN, this week reported a 10% year-over-year revenue drop in Q1. Cornerstone, which is comprised of four brands including Garnet Hill and Frontgate, was down 13% for the quarter, which the company attributed to ongoing “housing market stagnation.”