Actually, Nasdaq has been quite proactive on the delisting issue lately. MSEL hit their radar screen on August 4, 2000. The stock closed at $.1875 (post split $1.875) today; the new magic number is $.1675 (post split $1.675). Stock prices usually sell off after a reverse split. From the recently filed PRE 14A:
sec.gov
On August 4, 2000, we received a letter from Nasdaq advising us that
our common stock had not met Nasdaq's minimum bid price requirement for thirty
consecutive trading days and that, if we were unable to demonstrate compliance
with this requirement during the ninety calendar days ending November 2, 2000,
our common stock would be de-listed at the opening of business on November 6,
2000. Because our common stock did not regain compliance for a minimum ten-day
period, we applied to Nasdaq for a hearing, which resulted in the de-listing
being stayed during the hearing period. The hearing was held on November 30,
2000. At the hearing, the Company proposed that a 1-for-10 reverse stock split
be implemented for the purpose of increasing the market price of our common
stock above the Nasdaq minimum bid requirement. We have been advised by Nasdaq
that it will continue the listing of our common stock if the following
conditions are met: (1) on or before February 16, 2001, our common stock has a
closing bid price of at least $1.00; and (2) thereafter, our common stock has a
closing bid price of at least $1.00 for a minimum of 10 consecutive trading days
or a longer period at Nasdaq's discretion. In addition, the Company must achieve
compliance with all requirements for continued listing on the Nasdaq National
Market, including the $5 million market value of public float requirement. At
December 20, 2000, the market value of our public float was approximately $6.1
million. Assuming no further issuances of stock, following the reverse split,
the number of shares included in the public float would decrease from
approximately 29,860,000 to 2,986,000. Accordingly, our common stock would need
to trade at or above $1.675 after the reverse split in order to comply with the
Nasdaq continued listing criteria. The Company currently has no plan for
additional issuances and there is no assurance that the Company will meet all
the requirements following the split. |
