Dixie Group Inc. Faces Delisting, Moves to OTC Pink

Ticker: DXYN · Form: 8-K · Filed: Sep 26, 2024 · CIK: 29332

Sentiment: bearish

Topics: delisting, listing-standards, otc-pink

Related Tickers: DXYN

TL;DR

Dixie Group got booted from its exchange, now trading on the OTC Pink.

AI Summary

The Dixie Group, Inc. filed an 8-K on September 26, 2024, to report a notice of delisting or failure to satisfy a continued listing rule or standard. The company's stock was transferred to the OTC Pink market as of September 24, 2024, indicating a significant change in its listing status.

Why It Matters

This filing signifies a major downgrade in the company's stock exchange listing, which can impact liquidity, investor confidence, and the ability to raise capital.

Risk Assessment

Risk Level: high — A move to the OTC Pink market typically indicates severe financial distress or non-compliance with major exchange listing requirements, posing significant risk to investors.

Key Players & Entities

FAQ

What specific listing rule or standard did The Dixie Group, Inc. fail to satisfy?

The filing does not specify the exact rule or standard that was not met, only that the company received a notice of delisting or failure to satisfy a continued listing rule or standard.

When did the transfer of The Dixie Group, Inc.'s listing to the OTC Pink market become effective?

The transfer of the listing to the OTC Pink market was effective as of September 24, 2024.

What is the significance of a company moving to the OTC Pink market?

Moving to the OTC Pink market generally indicates a lower listing standard and can be associated with increased volatility, reduced liquidity, and potential financial difficulties for the company.

What is the former name of The Dixie Group, Inc. and when did it change?

The Dixie Group, Inc. was formerly known as Dixie Yarns Inc. and changed its name on July 3, 1992. It was also formerly known as Dixie Mercizing Co. prior to May 24, 1967.

What is the primary business of The Dixie Group, Inc. according to its SIC code?

The Dixie Group, Inc.'s Standard Industrial Classification (SIC) code is 2273, which corresponds to 'Carpets and Rugs'.

Filing Stats: 559 words · 2 min read · ~2 pages · Grade level 11.3 · Accepted 2024-09-26 16:33:39

Key Financial Figures

Filing Documents

01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing

Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing. As previously disclosed on March 26, 2024, The Dixie Group, Inc. (the "Company") received an extension of 180 days to regain compliance with the Nasdaq's minimum $1.00 bid price requirement set forth in Rule 5550(a)(2) for continued listing on the Nasdaq Capital Market (the "bid price requirement"). On September 24, 2024, the Company received a letter from Nasdaq notifying the Company that the Company had not regained compliance with the bid price requirement by the required compliance date and, as a result, the Company's common stock is subject to delisting. The Company has until October 1, 2024 to appeal this determination. If the Company elects to appeal Nasdaq's determination, the delisting of the Company's common stock will be automatically stayed pending the decision of the Nasdaq listing qualifications hearing panel. If the Company decides not to appeal Nasdaq's determination, trading of the Company's common stock will be suspended at the opening of business on October 3, 2024, and a Form 25-NSE will be filed with the Securities and Exchange Commission which will remove the Company's securities from listing and registration on The Nasdaq Stock Market. 2

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: September 26, 2024 THE DIXIE GROUP, INC. By: /s/ Allen L. Danzey Allen L. Danzey Chief Financial Officer

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