Satellite broadcast equipment developer Wegener has stated that it has retained its Nasdaq listing following an appeal.
In mid-December 2009, Wegener received notice from Nasdaq that it had determined to delist the company after it failed to comply with…
Satellite broadcast equipment developer Wegener has stated that it has retained its Nasdaq listing following an appeal.
In mid-December 2009, Wegener received notice from Nasdaq that it had determined to delist the company after it failed to comply with the stock exchange’s marketplace rule that the bid price of a company’s common stock must remain above US$1. Wegener was originally informed that it had breached this minimum bid requirement back in August 2008.
On January 13, 2010, Wegener was granted an appeal hearing with the Nasdaq Hearings Panel. Based on the evidence provided by Wegener, the panel granted its request to remain listed on Nasdaq subject to certain conditions. These conditions stipulate that on or before the exception deadline of June 7, 2010, the company must be compliant with the listing rules stipulating that it have at least one of a market value of US$35m, stockholders’ equity of at least US$2.5m or annual net income of US$500,000. In addition, Wegener is required to maintain a minimum bid price of US$1.00 per share for a minimum period of ten consecutive trading days.
Troy Woodbury, Wegener president and CEO, said: “We are very pleased that the Nasdaq Hearings Panel has granted Wegener Corporation until June 7, 2010 to be compliant with the Nasdaq listing requirements regarding the US$1.00 minimum closing bid price and stockholders’ equity. We presented a very comprehensive plan to Nasdaq, and while no assurances can be given, we are working in a very focused manner to achieve that plan.
“There clearly are significant obstacles in our path and we will be reporting an operating loss for the second quarter of fiscal 2010 which ends on February 26, 2010.”
On February 4, the shareholders of Wegener approved amendment to the company’s Certificate of Incorporation which allows it to effect a reverse stock split at an exchange ratio of between twelve-for-one and twenty-for-one. However, Woodbury pointed out that this would only occur as a last resort.
“As we have previously stated, the reverse stock split which has been approved by the shareholders, will not take place unless it is clear that the future performance of the Company will support such a split. We will be mindful of opportunities to improve the liquidity in our stock as Wegener Corporation’s performance improves in the future,” commented Woodbury.
