US denim company Joe's Jeans has received a letter from the Nasdaq Stock Market saying it is not complying with its rules because the closing bid price per share of its common stock has been below US$1.00 per share for more than 30 consecutive days.

It said the company will have 180 calendar days, or until 5 June, to regain compliance with the Bid Price Rule.

To regain compliance, the closing bid price of the company's common stock must remain at US$1.00 per share or more for a minimum of 10 consecutive trading days.

If Joe's Jeans does not regain compliance before 5 June 2013, it would be required to meet certain continued listing requirements and need to provide written notice of its intention to cure its deficiency, by undergoing a reverse stock split, if necessary.

If the company does not meet the criteria to gain an additional 180 day complaince period, its stock will be delisted.