Diedrich Given More Time to Raise Share Price, Avert Nasdaq Delisting

Coffeehouse chain Diedrich Coffee Inc. said Thursday that a Nasdaq hearing panel has given the Irvine specialty coffee retailer more time to regain compliance for continued listing on the Nasdaq National Market.

Diedrich said in a press release that to comply with Nasdaq requirements, it must maintain a closing bid price of at least $1 a share by May 14, then a closing bid price of at least $1 a share for a minimum of 10 consecutive days after that.

The company also must comply with certain other financial requirements by June 14.

As part of its compliance plan, Diedrich said it will seek shareholder approval at a May 7 annual meeting for a one-for-four reverse stock split, which would reduce the number of shares outstanding in an effort to boost the price per share.

The company also will seek approval to sell 8 million new shares at 75 cents a share to raise $6 million and issue warrants to purchase 2 million shares at $1.20 a share.

Diedrich stock gained 3 cents Thursday to close at 58 cents a share.