MSS operator Globalstar has delisted from the Nasdaq stock exchange having failed to comply with listing rules that require a minimum bid price of US$1 per share.
The company’s shares ceased trading on the exchange on 21 December and Globalstar now…
MSS operator Globalstar has delisted from the Nasdaq stock exchange having failed to comply with listing rules that require a minimum bid price of US$1 per share.
The company’s shares ceased trading on the exchange on 21 December and Globalstar now anticipates that its stock will trade over the counter (OTC) under its current GSAT symbol.
Nasdaq first informed Globalstar that it was in breach of its listing requirements back in September 2011. As a result of an appeal, Nasdaq gave Globalstar a grace period of 180 days, or until 12 March, to regain compliance and after failing to achieve this, Globalstar was given a further extension of 180 days to 7 September 2012.
The satellite operator subsequently announced that it was outlining a plan for a potential reverse stock split in order to remain listed. However, having decided not to go ahead with this plan and with Nasdaq rejecting Globalstar’s request for a further extension, the company was forced to delist.
Globalstar’s chairman and CEO, Jay Monroe, stated, “The board of directors carefully deliberated, over an extended period of time, the advantages and disadvantages of effecting a reverse stock split in order to seek to regain compliance with Nasdaq’s listing qualifications, and decided that doing so was not in the company’s or its stockholders’ best interests at this time.
“We remain keenly focused on the execution of our satellite communications and spectrum strategies to drive stockholder value, including completing our fourth second-generation satellite launch. We fully intend to seek listing on an accredited exchange as soon as it is feasible to do so.”