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Joann (NASDAQ:JOAN) stock is on a downward spiral today as the craft supplies retailer faces the imminent suspension of its shares on the Nasdaq Exchange.
With the bells of the stock market set to ring on Thursday, JOAN stock is bracing for suspension and subsequent delisting from the Nasdaq Exchange, a consequence of the company’s recent bankruptcy filing.
This financial turmoil has rendered Joann non-compliant with several Nasdaq regulations and resulted in a significant plunge in its stock value since the bankruptcy filing was initiated.
Joann has been formally notified of the impending delisting of its shares, but the company has chosen not to contest the exchange’s decision. The current trajectory suggests that once the bankruptcy proceedings conclude, Joann will transition into private ownership.
Implications of Wednesday’s Downturn on JOAN Stock
Today, investors holding JOAN shares are scrambling to offload their positions before the impending delisting. This flurry of activity has sparked heavy trading of over 1.7 million shares, significantly surpassing the daily average trading volume of approximately 1.1 million shares.
As of Wednesday morning, JOAN stock has plummeted by 19.9%, adding to an overall decline of 82.7% since the beginning of the year.
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On the day of this article’s publication, William White held no positions (directly or indirectly) in the securities mentioned. The views expressed in this piece reflect those of the writer and are subject to the standards outlined by InvestorPlace.com Publishing Guidelines.