Qumu Faces Nasdaq Delisting Due to Low Stock Price
Another Minnesota company is at risk of being delisted from the Nasdaq stock exchange.
Last week, Minneapolis video technology company Qumu Corp. received notice from Nasdaq that the company has failed to meet the exchange’s minimum closing bid price of $1 per share. Qumu’s stock price has closed under $1 for 30 consecutive business days, according to a July 26 filing with the U.S. Securities and Exchange Commission. As of Monday afternoon, Qumu’s stock was trading at 79 cents a share.
Qumu could be delisted from Nasdaq if its stock price remains under $1 a share. But it would still be a long time before that happens. The company now has 180 calendar days to comply with Nasdaq’s minimum bid price. Within that timeframe, the company will be considered compliant if its stock price holds at or above $1 a share for 10 consecutive days.
Qumu can even ask for an additional 180 days, provided the company meets all of other Nasdaq’s requirements.
“Qumu management is committed to maintaining its Nasdaq listing and is evaluating various measures to ensure meeting all listing requirements during the timeline provided by Nasdaq,” a spokeswoman said in an email.
In May, Nasdaq sent a similarly worded notice to Eagan-based Predictive Oncology when that company failed to meet the exchange’s minimum stock price requirement. The med-tech company still has not satisfied the requirement, with its stock trading at 42 cents a share as of Monday afternoon.
Qumu provides software that enables companies to host livestreams and create other kinds of videos. The company’s services have been used for product launches, employee onboarding, company town halls, and more.
But Qumu’s fortunes have not risen in step with the rapid shift to remote work. In each of the last three years, the company has operated at a multimillion-dollar loss. In 2021, Qumu reported a net loss of $16.9 million. In the first quarter of 2022 alone, the company logged a net loss of $4.7 million.
“While we generated positive cash flows from operations during part of 2020, we have historically not generated sufficient operating cash flow to fund our operations,” the company said in its 2021 annual report.
Qumu’s mailing address is in Minneapolis, but the company has closed its office space to employees here. In late 2020, Qumu closed its offices in Minneapolis, London, and India and adopted a policy that enabled its employees to “work from wherever, forever.”