For the second time in less than three months, MSS operator Terrestar has been informed by Nasdaq that it was in breach of the stock exchange’s minimum US$1 share price rule.
The company received notification on June 3 that for the last 30 consecutive…
For the second time in less than three months, MSS operator Terrestar has been informed by Nasdaq that it was in breach of the stock exchange’s minimum US$1 share price rule.
The company received notification on June 3 that for the last 30 consecutive business days the bid price traded below this minimum requirement. Terrestar now has 180 days, or until November 30, to regain compliance. If its does succeed in doing so Nasdaq will seek to delist the company, subject to an appeal.
Terrestar last fell foul of Nasdaq rules in early March but the share price quickly recovered to above the minimum US$1 price by the latter half of the month. However, since April 21, the company’s share price has been below US$1 and has continued to fall, hovering just under the 50 cents per share mark since May 17. At the time of going to press Terrestar’s share price was trading at 48 cents a share.
Terrestar’s largest shareholder remains the hedge fund Harbinger Capital Partners, which is in the process of launching a nationwide terrestrial broadband mobile 4G network that will utilise spectrum from both Terrestar and its MSS peer SkyTerra.