Coldwater Creek proposes reverse stock split to remain listed on the Nasdaq
Sandpoint women’s apparel retailer Coldwater Creek is proposing a reverse stock split to keep the company trading on the Nasdaq market.
A filing with the Securities and Exchange Commission proposes a vote by Coldwater shareholders to approve the split. Neither the date for the election or the split ratio has been decided, said company spokeswoman Bobbi Earle.
The Nasdaq rules state a company’s stock will be delisted if it remains below $1 a share for 90 days following a notice of possible delisting.
Nasdaq sent that notice to Coldwater Creek in mid-June. Its share price was last above $1 on May 10. Since then its price has fallen to 45 cents and as high as 80 cents.
It closed Monday at 63 cents.
While struggling to revive its stock price, the company has earned some market support because of a recent infusion of cash from equity firm Golden Gate Capital. Last month the San Francisco-based fund announced it’s lending Coldwater Creek $65 million.
In exchange, Golden Gate Capital gets to choose two directors to Coldwater Creek’s board.