PowerCerv Corporation Announces Decision of Nasdaq Listing Qualifications Panel
TAMPA, Fla.--(BUSINESS WIRE)--May 17, 2001--PowerCerv Corporation (Nasdaq:PCRV - news) announced today that on May 16, 2001, a Nasdaq Listing Qualifications Panel issued its decision with regard to PowerCerv's request for continued inclusion on The Nasdaq National Market pursuant to an exception from Nasdaq's minimum bid price, market value of public float and net tangible assets requirements. The decision followed an oral hearing before the hearing panel on April 6, 2001.
The hearing panel determined to transfer the listing of PowerCerv's common stock to The Nasdaq SmallCap Market, effective with the open of trading on Friday, May 18, 2001, pursuant to a temporary exception from the listing requirements. The exception is subject to PowerCerv meeting certain conditions, including:
(1) On or before June 5, 2001, PowerCerv must demonstrate a
closing bid price of at least $1.00 per share and, immediately thereafter, a closing bid price of at least $1.00 per share for a minimum of 10 consecutive trading days.
(2) PowerCerv must be able to demonstrate compliance with all requirements for continued listing on The Nasdaq SmallCap Market.
PowerCerv currently satisfies all requirements for continued listing on The Nasdaq SmallCap Market, with the exception of the $1.00 per share minimum bid price requirement. To address this requirement, PowerCerv has included a proposal in its proxy statement for its annual meeting of shareholders, scheduled for June 1, 2001, to amend its articles of incorporation to effect a reverse stock split. It is hoped that a reverse stock split, if approved by shareholders, will increase the trading price of PowerCerv's common stock above the $1.00 minimum bid price requirement. The proposal provides for a split ratio range of between 1-for-3 and 1-for-9. PowerCerv's Board of Directors is to determine the split ratio within that range at the time of filing the amendment to the articles of incorporation based on a number of factors, with the goal of enhancing the likelihood that the per share trading price following the reverse stock split is well above the $1.00 level. If shareholders fail to approve the proposed amendment to the articles of incorporation, it is unlikely PowerCerv will satisfy the hearing panel's condition by June 5, 2001. In such case, PowerCerv's common stock would be subject to delisting.
The exception will expire on June 5, 2001. For the duration of the exception, PowerCerv's Nasdaq symbol will be ``PCRVC.'' In the event PowerCerv is deemed to have met the terms of the exception prior to the expiration of the exception period, PowerCerv's common stock will continue to be listed on The Nasdaq SmallCap Market.
Subject to obtaining shareholder approval of the proposed amendment to its articles of incorporation to effect a reverse stock split, PowerCerv believes it can meet these conditions. However, there can be no assurance that it will do so. If at some future date the PowerCerv's common stock should cease to be listed on The Nasdaq SmallCap Market, the stock may be eligible for quotation by market makers on the Over-the-Counter Bulletin Board. |
