Dan River avoids NYSE delisting
Staff -- Home Textiles Today, 7/8/2002
DANVILLE, VA — With its stock price climbing sharply higher since the end of last year, Dan River Inc., once threatened with delisting from the New York stock Exchange, has successfully met the Big Board's minimum share-price requirement for continued listing.
Dan River's NYSE listing was placed in jeopardy when its share price fell beneath $1.00 for 30 consecutive days during the fourth quarter of last year, and the textiles producer was given six months to get its stock price above the $1.00 benchmark for 30 consecutive trading days.
With its stock staging a big rally since the end of last year, Dan River easily passed the test, and as of June 26, the end of the six-month grace period, its stock was trading at $5.23, with a 30-day average price of $4.28.
At $5.23 a share, the Dan River's stock is now trading at more than 29 times its 52-week low of just $0.18 a share.
In an effort to head off the threatened delisting, the company had planned, if needed, to put into effect a reverse split, which would have reduced the number of shares outstanding, driving the stock price proportionately higher. Plans for a reverse split, approved at the company's shareholder meeting in April, have now been called off.
