Richmond, Va. Circuit City Stores announced Thursday that, on Oct. 24, the New York Stock Exchange (NYSE) notified the company that it did not satisfy one of the NYSE's standards for continued listing applicable to the company's common stock. The NYSE noted specifically that the company was "below criteria" for the NYSE's price criteria for common stock because the average closing price of the company's common stock was less than $1 per share over a consecutive 30-trading-day period as of Oct. 22.
Under NYSE policy, in order to cure the deficiency for this continued listing standard, the company's common stock share price and the average share price over a consecutive 30-trading-day period must both exceed $1 by six months following receipt of the non-compliance notice. The NYSE also notified the company that the NYSE has the right to reevaluate continued listing determinations with respect to qualitative listing standards, including an abnormally low selling price at sustained levels.
In other news, a major shareholder of Circuit City has cut its holdings in the nation's No. 2 consumer-electronics retailer, according to a regulatory filing on Thursday, the Richmond Times-Dispatch reported.
Classic Fund Management Aktiengesellschaft, a Liechtenstein-based asset-management company, lowered its stake to 8.2 million shares, or about 4.8%, from 9.5 million shares, or about 5.6%, according to documents filed with the Securities and Exchange Commission.