Broadcast graphics specialist Chyron reported that it has received notification of potential delisting from the Nasdaq Stock Market because it no longer complies with NASDAQ Listing Rule 5450(a)(1) (the “Minimum Bid Price Rule”), as the bid price of the Company’s common stock closed below the minimum $1.00 per share for the 30 consecutive business days.
Chyron has an initial grace period of 180 days, or until May 6, 2013, to regain compliance with the Minimum Bid Price Rule. If it is not able to do this, NASDAQ will provide written notification to Chyron that its common stock will be delisted.
In order for Chyron to regain compliance, the company’s common stock must close at or above $1.00 per share for a minimum of 10 consecutive business days at any time before May 6, 2013.
Chyron says it “intends to monitor the bid price for its common stock between now and May 6, 2013 and will consider various options available to the Company if its common stock does not trade at a level that is likely to regain compliance.” The company said that it may appeal NASDAQ’s delisting determination, and that it may also be eligible for an additional grace period of 180 days if it satisfies all of the requirements of NASDAQ Listing Rule 5505, other than the minimum bid price requirement.
Chyron’s shares fell more than 10% to $0.50 on the news. The company’s stock price has been below $1 since October 1, 2012, and is currently at the lowest level in the company’s history according to this chart.
Last week on its Q3 2012 earnings call, Chyron Michael Wellesley-Wesley was asked about the potential for the company’s shares to be delisted. Wellesley-Wesley responded by saying that one NASDAQ’s listing requirements “is that the bid price shouldn’t drop below $1 for more than 30 days and we’re now at around that point. The next step would be to receive some notification from NASDAQ that is the case and that is of concern to them. And then there is a long process of discussion with NASDAQ, who I don’t think are keen to delist any companies and there are certainly many strategies and ways that we could avoid that happening and it is a three to six months process and so nothing is going to happen quickly.”
Chyron 8-K Filing: Notice of Potential Delisting From Nasdaq
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