Granite City Is Delisted from the Nasdaq Exchange
Granite City Food & Brewery, Ltd., said late Wednesday that its stock will no longer be listed on the Nasdaq exchange due to a failure to meet minimum shareholders’ equity requirements.
The St. Louis Park-based restaurant chain said that its management recently met with a Nasdaq hearings panel to discuss its listing on the exchange, as well as its future growth plans.
Granite City said that it has been notified by Nasdaq that its stock will be delisted effective Friday, and the company has decided not to ask Nasdaq to reconsider its decision. Rather, shares of the company’s stock will begin trading on the OTCQB marketplace, a so-called “over-the-counter” exchange that does not have financial requirements like Nasdaq, on Friday.
Granite City said that its shares will continue to trade under the symbol “GCFB,” and the shift will not alter its regulatory and reporting obligations.
“Despite the move to the OTCQB, Granite City will maintain high standards of disclosure and remain in an environment where we can tell a great story of growth and value for current and future shareholders,” CEO Rob Doran said in a statement.
Doran added that Granite City has “weathered one of the worst periods in the history of the restaurant industry, surviving and growing while many other multi-unit restaurant concepts have either disappeared or have been absorbed by other industry restaurant players.”
During its fourth quarter, which ended December 25, Granite City reported a net loss of $1 million, compared to a loss of $3.1 million from the same period the prior year. Revenue, however, climbed 33 percent to $30.9 million.
For its full fiscal year, the company’s revenue climbed about 30 percent to $121 million. Its net loss narrowed to $4.1 million from $4.6 million the prior year; the latest fiscal year included about $1.8 million in expenses tied to expansion efforts, including the opening of new restaurants and the acquisition of Cadillac Ranch All American Bar & Grill restaurants.
Such efforts have resulted in significant costs that, “despite our overall operating performance, decreases our shareholder equity,” Doran said in a Wednesday statement.
“With positive operating trends and strong relationships with our banking and other financing sources, we believe we are in a significantly stronger position to improve profitability and build shareholder value than in prior years when we had $2.5 million in shareholders’ equity,” Doran added.