After the past couple of years being filled with ups and downs, particularly in regard to the stock market, Design Within Reach has decided to delist the company from Nasdaq. Opting to drop out before they were asked for failing to stay above the one dollar per share mark that Nasdaq demands, the company apparently wanted to face facts earlier than later and help keep themselves going without one more issue to worry about and will excuse themselves from being traded on July 6th, followed by the official delisting ten days later. What does this mean for DWR, once they become this quasi-public company? We’re not entirely sure. They certainly seemed to be turning things around more recently, following a rough 2006 (which found them regularly battling with Nasdaq), but then the bottom dropped out on nearly every business, particularly those tied in so closely with the housing market. So only time will tell if this will be just a temporary move or the first step toward something worse. Here’s a bit:
The decision to delist is part of the company’s effort to preserve limited resources; trading volume was too small to justify the cost and administrative burden of maintaining the listing.
Come July, the company expects to list its stock on the Pink Sheets, an electronic service for over-the-counter securities, but only if there is an interest in trading DWR’s common stock. The company will continue to file periodic, quarterly and annual reports with the Securities and Exchange Commission.
Though now thinking about it, could this also be some sort of generated business move to get the price down so they can sell the company, as was rumored earlier this year? Hmm.