The voluntary decision rests on the fact that the company is in not in compliance with Nasdaq’s rules that it maintain a minimum bid price of $1; in response, the company today notified the Nasdaq Stock Market of its intent to voluntarily delist its common stock from Nasdaq, and announced that it will file a Form 25 with the Securities and Exchange Commission to effect the delisting.
Jim Haughton, senior vice president and controller, said that while the company’s share price would require the company to take action, its voluntary move to the OTCBB will also allow the company to lower costs and keep shareholders’ best interests in mind.
“The move from Nasdaq to the bulletin board offers us the opportunity to reduce costs. Additionally, with the recent decline in our stock price below $1 per share, our continued listing on Nasdaq would have required us to effect a reverse stock split to increase the per share price of Common Stock, which in many instances leads to an erosion in stockholder value. In light of these considerations, the Company has determined to take the initiative and move to the bulletin board,” Haughton stated.
The company noted that its withdrawal from Nasdaq will not affect its filing of periodic reports with the Securities and Exchange Commission.
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