Blue Apron is holding off the possibility of being delisted from the New York Stock Exchange after receiving a warning in December that it is not in compliance with the exchange’s listing requirements. The meal kit maker announced this week that the stock exchange has accepted the company’s business plan to regain compliance.
The exchange requires that companies have an average market capitalization of at least $50 million and maintain a minimum average closing price of at least $1 per share for a consecutive 30-day trading period. Companies on the exchange must also have a total stockholders’ equity equal to or greater than $50 million. Blue Apron disclosed it did not meet any of those requirements.
Blue Apron is now embarking on a share price cure period. The meal kit maker submitted its roadmap for fixing the global market capitalization listing standard deficiency on Feb. 6 and has until June 21, 2024, to regain compliance. Blue Apron has until June 21, 2023, to fix its share price listing standard deficiency.
The NYSE will review the company on a quarterly basis for compliance, per the announcement.
If Blue Apron does not make “sufficient progress” on its efforts to meet the listing requirements, the company will face the NYSE’s suspension and delisting procedures, the announcement notes.
Blue Apron has been grappling with a cash crunch. At the end of last year, the company cut 10% of its corporate workforce as part of an effort to trim $50 million in expenses in 2023.
Blue Apron’s former CFO Randy Greben left the meal kit company in mid-October. Mitchell Cohen, an outside hire, is serving as interim CFO until a replacement is found.
In a bid to expand its consumer reach, Blue Apron started making its meal kits available through Amazon and Walmart.com last year.