Qurate Retail, Inc. Transfers Equity Listing to the Nasdaq Capital Market

Rhea-AI Summary

Qurate Retail (Nasdaq: QRTEA) announced the transfer of its securities listing from the Nasdaq Global Select Market to the Nasdaq Capital Market, effective December 2, 2024. This move follows a June 10, 2024 notice from Nasdaq regarding non-compliance with the minimum bid price requirement. The company will have until December 9, 2024, to meet the $1.00 minimum bid price requirement, with the possibility of an additional 180-day extension.

The company has confirmed to Nasdaq its willingness to implement a reverse stock split if necessary to regain compliance. Compliance can be achieved if QRTEA's bid price reaches at least $1.00 for 10 consecutive business days. Qurate Retail does not expect material impact on equity trading from this transfer and does not plan to reapply for Global Select Market listing in the near term.

Positive

• None.

Negative

• Stock price declined below Nasdaq Global Select Market minimum requirements
• Forced transfer to Nasdaq Capital Market due to non-compliance
• Potential need for reverse stock split to maintain listing
• Risk of delisting if minimum bid price requirements are not met

Insights

Financial Analyst

The move to the Nasdaq Capital Market is a concerning development for Qurate Retail, signaling significant financial distress. The company's inability to maintain the $1 minimum bid price requirement on the Nasdaq Global Select Market reflects severe market skepticism about its business model and future prospects. With a market cap of just $172 million, the company's valuation has deteriorated substantially.

The potential reverse stock split mentioned is typically seen as a last-resort measure and doesn't address the underlying business challenges. While the transfer provides additional time to meet listing requirements, the company's commitment to a potential reverse split suggests organic options for share price recovery. The situation indicates heightened risk for investors, with potential delisting remaining a serious concern if compliance isn't achieved during the extended period.

Market Research Analyst

This development reflects broader challenges in the retail sector, particularly for companies heavily invested in traditional TV-based shopping models. Despite Qurate's reach to over 200 million homes and multiple retail brands, the market's valuation suggests skepticism about the company's ability to successfully transition in an increasingly digital retail landscape. The listing transfer and potential reverse split could further impact institutional investment interest and market liquidity. The company's struggle to maintain basic listing requirements, despite its Fortune 500 status and established brands like QVC and HSN, indicates a fundamental misalignment with current market expectations and consumer behavior trends.

ENGLEWOOD, Colo.--(BUSINESS WIRE)-- Qurate Retail, Inc. (“Qurate Retail” or the “Company”) (Nasdaq: QRTEA, QRTEB, QRTEP) announced that it received approval from the Listing Qualifications Department of the Nasdaq Stock Market (“Nasdaq”) to transfer the listing of the Company’s Series A common stock (“QRTEA”), Series B common stock, and 8.0% Series A Cumulative Redeemable Preferred Stock (collectively, the “Securities”) from the Nasdaq Global Select Market to the Nasdaq Capital Market. The listing of the Company’s Securities was transferred to the Nasdaq Capital Market at the opening of business on December 2, 2024. This follows the notice received from Nasdaq on June 10, 2024 that, based on the closing bid price for QRTEA for 30 consecutive business days, Qurate Retail no longer complied with the minimum bid price requirement for continued listing on the Nasdaq Global Select Market (the “Minimum Bid Price Requirement”).

Qurate Retail will be listed and traded on the Nasdaq Capital Market from December 2, 2024 through December 9, 2024 (the initial compliance date by which Qurate Retail was required to satisfy the Minimum Bid Price Requirement), following which Nasdaq may grant the company (subject to its compliance with the continued listing requirements of the Nasdaq Capital Market, other than the Minimum Bid Price Requirement) an additional 180-day extension to comply with the Minimum Bid Price Requirement, during which time Qurate would continue to trade on the Nasdaq Capital Market (the “New Compliance Period”). Qurate Retail has also confirmed to Nasdaq that it will effect a reverse stock split if necessary to regain compliance with the Minimum Bid Price Requirement prior to the expiration of the New Compliance Period. If at any time before the expiration of the New Compliance Period, if granted by Nasdaq, the bid price of QRTEA is at least $1.00 for a minimum of 10 consecutive business days, Nasdaq will provide written confirmation of compliance for continued listing on the Nasdaq Capital Market.

There can be no assurance that Qurate Retail will be able to regain compliance with the Minimum Bid Price Requirement or will otherwise be in compliance with other applicable Nasdaq listing criteria, generally or for purposes of qualifying for an additional 180-day compliance period, or that Qurate Retail will be able to successfully implement a reverse stock split if it decides to pursue one.

Qurate Retail does not anticipate a material impact on its equity trading as a result of the transfer of listing. The Company does not intend to reapply for listing on the Nasdaq Global Select Market in the near term.

About Qurate Retail, Inc.

Qurate Retail, Inc. is a Fortune 500 company comprised of six leading retail brands – QVC^®, HSN^®, Ballard Designs^®, Frontgate^®, Garnet Hill^® and Grandin Road^® (collectively, “Qurate Retail Group^SM”). Qurate Retail Group is the largest player in video commerce (“vCommerce”), which includes video-driven shopping across linear TV, ecommerce sites, digital streaming and social platforms. The retailer reaches more than 200 million homes worldwide via 15 television channels, which are widely available on cable/satellite TV, free over-the-air TV, and digital livestreaming TV. The retailer also reaches millions of customers via its QVC+ and HSN+ streaming experience, websites, mobile apps, social pages, print catalogs, and in-store destinations. Qurate Retail, Inc. also holds various minority interests.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241203247179/en/

Qurate Retail, Inc.

Shane Kleinstein, 720-875-5432

Source: Qurate Retail, Inc.

FAQ

Why did Qurate Retail (QRTEA) move to Nasdaq Capital Market?

Qurate Retail transferred to Nasdaq Capital Market because it failed to maintain the minimum bid price requirement for the Nasdaq Global Select Market, as notified on June 10, 2024.

What is the deadline for Qurate Retail (QRTEA) to regain compliance?

The initial compliance deadline is December 9, 2024, with the possibility of an additional 180-day extension if granted by Nasdaq.

How can Qurate Retail (QRTEA) regain compliance with Nasdaq requirements?

Qurate Retail can regain compliance if its stock price reaches at least $1.00 for 10 consecutive business days, or through implementing a reverse stock split if necessary.