Chyron Receives Another Delisting Notice From NASDAQ

Posted by Joe Zaller
Mar 17 2013

Chyron said it received a letter from The NASDAQ Stock Market notifying the company that it is no longer in compliance with the minimum stockholders’ equity requirement for continued listing on the NASDAQ Global Market (the “Notice”).

This is the second time in the past few months that Chyron has received a notice of potential delisting from NASDAQ.  The company previously received a notice of potential delisting from NASDAQ in November 2012 when its closing share price fell below $1.00 for more than 30 days. In that instance, the company’s share rose enough to enable the company to regain compliance with NASDAQ’s listing rules, and the company said the matter was closed

The latest notice of potential delisting is for a different reason.  This time, the company is not in compliance with NASDAQ Listing Rule 5450(b)(1)(A), which requires companies listed on the NASDAQ Global Market to maintain a minimum of $10,000,000 in stockholders’ equity. As disclosed in the company’s 10-K for the fiscal year ended December 31, 2012, Chyron did not meet this requirement.

Chyron pointed out that this latest notice of potential delisting does not result in the immediate delisting of its common stock from NASDAQ, and that in accordance with NASDAQ Listing Rules, the company has 45 calendar days from the date of the Notice, or until April 26, 2013, to submit to NASDAQ a plan to regain compliance with this continued listing requirement.

If the plan is accepted, NASDAQ may grant the Company an extension of up to 180 calendar days from the date of the Notice for the Company to provide evidence of compliance.

If NASDAQ does not accept the company’s plan, Chyron may apply to transfer the listing of its common stock to the NASDAQ Capital Market (which has a lower stockholders’ equity requirement for continued listing) if it satisfies all of the criteria for initial listing on the NASDAQ Capital Market. If the company does not transfer its common stock to the NASDAQ Capital Market, NASDAQ will notify Chyron that its common stock is subject to delisting. At that time, the company may appeal the delisting determination to a NASDAQ Hearings Panel.

Chyron says it does intend to submit a plan to NASDAQ to regain compliance with the NASDAQ Listing Rules, but there can be no assurance NASDAQ will accept the plan.

A primary element of Chyron’s plan will be to note the potential for a positive impact of the company’s recently announced merger with Hego, which is expected to close in the second quarter of 2013.

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Related Content:

 

Chyron SEC Filing – Delisting Notice From NASDAQ for Failure to maintain a minimum of $10,000,000 in stockholders’ equity

More Broadcast Vendor M&A: Chyron to Acquire Hego Group in All-Stock Deal

Chyron Posts Another Loss in Q4 2012 as Revenue Continues to Decline

Rising Share Price Helps Chyron Avoid NASDAQ Delisting

Chyron Receives Notice of Potential Delisting From NASDAQ

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One Response

  1. Ampex, RCA, Grass Valley, Chyron. These were the brand names I learned on my first TV job. Then for many years I carried a Sony on my shoulder.

    In business school we learned that every company has a life span. I suppose that is true.

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