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Delisting of Blue Apron?

12/27/2018

Blue Apron (APRN) has sunk into penny-stock territory. At 13h30 on Wednesday, December 19th, stock declined to $0.85. The 52-week high for APRN is $4.56 having attained $10 at the July 2017 IPO. The Company has 30-days to rise above $1 and then stay above this threshold to avoid delisting.

On November 13th, the company reported a 3rd quarter loss of $34 million for the period ending September 30th. This value was “less bad” than the corresponding 3rd quarter in 2017. Comparing the 3rd quarter of 2018 with 2017, orders declined by 27 percent and the number of customers by 16 percent. The company posted revenue of $150 million. Although achieving a 67 percent gross margin, operating margin attained negative 21 percent of revenue. A sharp fall in share price was attributed to release of information confirming large sale at $1.11 by the founder and by other executives. As of December 27th, 24 percent of the float was short.

An agreement between Blue Apron and WW Inc. (formerly Weight Watchers) was announced on December 26th boosting shares by 16 percent. On December 27th at market open APRN traded at $0.83 with a market capitalization of $161 million. A previous strategic partnership between WW and Chef’d foundered in July due to logistic restraints.