ASTN delisting article
Ashton Tech Says Doesn't Meet Continued Listing Rules
Updated: Monday, July 30, 2001 09:20 AM ET
WASHINGTON (Dow Jones)--Ashton Technology Group Inc. (ASTN, news, msgs) said it doesn't meet the requirements for continued listing on the Nasdaq National Market or the Nasdaq SmallCap Market.
In its second quarter report filed Monday with the Securities and Exchange Commission, Ashton said its stock could be delisted if it doesn't "achieve and sustain these standards within a reasonable period of time."
Ashton would have to demonstrate a minimum tangible net worth of $4 million and a minimum common stock bid price of $1 to continue trading on the national market. Continued listing on the smallcap market would require a minimum tangible net worth of $2 million and a minimum bid price of $1.
Ashton, a developer of electronic trading systems, didn't say in the filing whether it had received a delisting notice from the Nasdaq.
On Friday, shares of Ashton Technology closed at 96 cents, up 17% from the previous day's close of 82 cents.
(Corrected 11:07 AM)
Ashton also said in the filing that it could face claims from certain purchasers of its common stock because of an error in regulatory filings.
Refunds or damages related to the potential claims could total up to $2 million, plus interest, if the purchasers suffer a complete loss of their investment within one year of the transaction, the filing said.
After the sale of Ashton stock in May by certain selling shareholders, the company became aware of an error in the documents filed with the SEC to register the shares for sale, the filing said.
The registration documents incorporated by reference the company's annual report for the year ended March 31, 2000, rather than for the year ended March 31, 2001, and as a result the stock wasn't properly registered pursuant to the Securities Act of 1933, the filing said.
Individuals who purchased the shares from the selling stockholders have the right for one year to seek to tender their shares to Ashton for the purchase price, plus interest and any losses from a decline in the value of their investment.
Ashton said there's no guarantee its insurance would cover any payments made as a result of claims.
- Robert L. Grant, Dow Jones Newswires; 202-393-7851; robert.grant@dowjones.com
On Friday, shares of Ashton Technology Group Inc. (ASTN, news, msgs) closed at 96 cents, up 17% from the previous day's close of 82 cents.
(An item published at 9:20 a.m. EDT incorrectly said the company's stock price fell Friday.) |
