Vacation rental management company Vacasa is at risk of being delisted from the Nasdaq Stock Market because it is not in compliance with the minimum bid price requirement. Vacasa’s common stock has been below $1 per share for 30 consecutive business days.
The news comes on the heels of hospitality company Sonder announcing that it is at risk of delisting from Nasdaq for the same reason.
Vacasa said in an April 27 filing with the United States Securities and Exchange Commission that it had received a warning from Nasdaq.
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“The notice has no immediate effect on the listing of the Company’s Class A common stock, and the Common Stock will continue to trade on the Nasdaq Global Select Market under the symbol ‘VCSA’ at this time, subject to the Company’s compliance with the other Nasdaq listing requirements,” Vacasa said in its filing.
The notice comes several months after Vacasa laid off 1,300 employees, or about 17% of its workforce. The Portland-based company, founded in 2009, went public in late 2021 via a special purpose acquisition company. Vacasa debuted with a valuation of $4.4 billion and more than $340 million in gross cash proceeds.
The company has 180 calendar days from the date of notice to regain compliance with the bid price requirement. If common stock is at least $1 per share for a minimum of 10 consecutive business, Nasdaq will provide Vacasa with written confirmation of compliance, and the matter will be closed, according to the SEC filing.
If the company does not regain compliance by Oct. 24, it may be eligible for an additional 180-calendar-day compliance period if it applies to transfer the listing of its common stock to the Nasdaq Capital Market.
Vacasa said it “intends to monitor the closing bid price of its stock and assess potential actions to regain compliance with the Nasdaq Listing Rules, which may include a reverse stock split.”
“There can be no assurance that stockholders will approve the reverse stock split proposal at the annual meeting, that a reverse stock split, if implemented, will increase the market price of the common stock in proportion to the reduction in the number of shares of the common stock outstanding before the reverse stock split or, even if it does, that such price will be maintained for any period of time,” the company stated.
In an earnings call discussing fourth-quarter and full-year 2022 financial results, Vacasa CEO Rob Greyber said 2023 would be a “transition year” in which the company sets itself up for “long-term, measured, profitable growth in the future.”
While Vacasa had operated in a hyper-growth environment the past few years, Greyber said in the March earnings call, now the company is operating in a more “dynamic environment.” Greyber became CEO in September 2022.