filing for Chapter 11 bankruptcy<\/a>. <\/p>\nIn its delisting announcement, Sleep Number stated, \u201cNasdaq\u2019s determination was based on the filing of the Chapter 11 Cases and associated public interest concerns raised thereby, concerns regarding the residual equity interest of common stockholders and concerns about the Company\u2019s ability to sustain compliance with all requirements for continued listing on Nasdaq.\u201d<\/p>\n
As for current stockholders, Sleep Number says its \u201ccommon stock may be quoted on over-the-counter markets, although the Company does not provide any assurance regarding whether the common stock will trade on such markets, whether broker-dealers will provide quotes for the common stock or whether an efficient market for the common stock will develop.\u201d<\/p>\n
Sleep Number\u2019s shares fell more than 50% in after-hours and into premarket trading on Thursday. At close on Wednesday, the company\u2019s shares were already over 95% down year-to-date (YTD). <\/p>\n
The delisting isn\u2019t expected to impact the Chapter 11 proceedings. <\/p>\n
“A complete or significant loss on their investment”<\/h2>\n
Sleep Number sought Chapter 11 bankruptcy protection due to what its CEO and president, Linda Findley, called an \u201cunsustainable\u201d capital structure.\u00a0<\/p>\n
\u201cWhile we have made meaningful progress advancing our turnaround efforts and strengthening our operations, our capital structure remains unsustainable,\u201d Findley stated. <\/p>\n
Now, Sleep Number will merge with Sleep Country Canada to create a large North American mattress and bedding company. Sleep Number expects to receive up to $260 million of debtor-in-possession financing from declaring bankruptcy. <\/p>\n
\u201c[We] are confident that moving forward with the Sleep Country Canada agreement and this court-supervised sale process will enable us to address our financial constraints,\u201d Findlay added. \u201cIt will also position us to expand our business, helping more people achieve their best sleep both in the United States, and through future international expansion.\u201d<\/p>\n
However, this is not necessarily great news for current shareholders. <\/p>\n
In its announcement, Sleep Number said it “expects that holders of shares of the Company\u2019s common shares will experience a complete or significant loss on their investment, depending on the outcome of the Chapter 11 Cases.”<\/p>\n
Sleep number plans to have its brick-and-mortar and online stores operating as usual during this process.<\/p>\n
\n
Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Shares of Sleep Number Corporation will no longer be publicly traded after next week. In a filing with the Securities and Exchange Committee (SEC), the embattled mattress and bedding company confirmed that its stock (Nasdaq: SNBR) will be delisted from the Nasdaq after it had received written notice from the exchange\u2019s listings qualifications staff.\u00a0\u00a0 The<\/p>\n","protected":false},"author":1,"featured_media":15204,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[],"class_list":["post-15203","post","type-post","status-publish","format-standard","has-post-thumbnail","category-brand-spotlights"],"_links":{"self":[{"href":"https:\/\/wildgreenquest.com\/index.php?rest_route=\/wp\/v2\/posts\/15203","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wildgreenquest.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wildgreenquest.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wildgreenquest.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/wildgreenquest.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15203"}],"version-history":[{"count":0,"href":"https:\/\/wildgreenquest.com\/index.php?rest_route=\/wp\/v2\/posts\/15203\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wildgreenquest.com\/index.php?rest_route=\/wp\/v2\/media\/15204"}],"wp:attachment":[{"href":"https:\/\/wildgreenquest.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15203"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wildgreenquest.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15203"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wildgreenquest.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15203"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}