Egghead.com seeks hearing to fight Nasdaq delisting

Online technology product and clearance goods retailer Egghead.com has requested a hearing from Nasdaq to appeal a delisting determination. Egghead.com received notification from Nasdaq July 10 that it was in violation of the $1 minimum bid price requirement for continued listing on Nasdaq. Under the rule, companies whose shares have traded below $1 for 30 consecutive days are subject to removal from the Nasdaq board.

Shares of Egghead.com, in a slow decline over the past several months, haven’t traded above $1 since May 1, when they reached a day’s high of $1.01 to close later at 97 cents. The shares hit a 52-week low July 9 when they closed at 50 cents. The hearing, expected within 45 days, is a bid to buy time for company to boost its share price. In an effort to increase the value of the shares, Egghead’s Board of Directors June 18 approved a reverse stock split in the range of 1:5 to 1: 10. The stock split is still subject to shareholder approval.

Egghead.com posted a net loss of $8.1 million in its first quarter ended March 31.