Furniture Brands International closed at 56 cents today, which is expected to be its last day trading on the New York Stock Exchange, per its announcement last week.
After a 1-for-7 reverse stock split on May 29, when Furniture Brands traded at $6.43, the stock has lost 91 percent of its value.
The company announced it will begin trading on the OTCQB market on Wednesday:
Furniture Brands International today announced that its common stock will begin trading on the OTCQB Marketplace (“OTCQB”) under the ticker symbol “FBNI” commencing August 28, 2013. Investors will be able to view Real Time Level II stock quotes for “FBNI” at http://www.otcmarkets.com/stock/FBNI/quote. The move to the OTCQB does not change the company’s SEC reporting obligations under applicable securities laws. Accordingly, the company will continue to file proxy statements, Quarterly Reports on Form 10-Q, Annual Reports on Form 10-K, Current Reports on Form 8-K and other required documents with the SEC.
So what is the OTCQB?
The venture stage marketplace for smaller or early-stage companies that report to a U.S. regulator such as the SEC or FDIC. The OTCQB is the middle tier of the three marketplaces for trading over-the-counter stocks provided and operated by the OTC Markets Group. The OTCQB has replaced the Financial Industry Regulatory Authority (FINRA)-operated OTC Bulletin Board (OTCBB) as the main market for trading OTC securities that report to a U.S. regulator. As it has no minimum financial standards, the OTCQB includes shell companies, penny stocks and small foreign issuers.