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Grill Concepts to delist stock

WOODLAND HILLS Calif. Grill Concept Inc.’s stockholders Tuesday ratified a previously announced plan to delist the company's stock from the Nasdaq exchange as early as Wednesday.

Officials said the move would save the company an estimated $766,000 a year by eliminating the increasingly expensive cost of public reporting.

Approved at a special meeting Tuesday, the plan included a reverse-forward stock split that would essentially cash out the smallest shareholders to reduce the number of stakeholders to 300 or below, allowing the delisting.

The stock split uses a 1-share-to 35-share ratio and stakes below the 35-share mark would be purchased for $1.50 each in cash. Stakeholders owning 35 shares or more would retain their number of shares following a subsequent forward stock split, which holds the same 1-to-35 ratio.

Grill Concepts’ stock has been trading below $1 since December 2008 and on Tuesday dropped 32 percent to close at 17 cents a share, a new low. Over the past 52 weeks, the company's stock has traded as high as $4.20.

The company said Tuesday that it will file a Form 25 Notification of Removal From Listing with the Securities and Exchange Commission on or around March 20. As a result, the listing of its shares on Nasdaq will be terminated on or about March 18.

After delisting, however, the company expects its shares will be quoted on the Pink Sheets Electronic OTC Markets.

Woodland Hills-based Grill Concepts owns, manages and licenses 32 restaurants, including seven fine-dining Grill on the Alley locations, 24 casual-dining Daily Grill restaurants, and one quick-service In Short Order outlet in Seattle.

Contact Lisa Jennings at [email protected].

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