OLD NEWS, but...
Genroco taking itself off OTC board
By LEE BERGQUIST of the Journal Sentinel staff
Last Updated: June 19, 2001
Genroco Inc., a financially struggling networking equipment company based in Slinger, said Tuesday that it was taking itself off Nasdaq's Over-the-Counter Bulletin Board.
The company said it was removing itself to reduce costs associated with OTC reporting requirements.
Genroco, whose stock has fallen from more than $5 a share to 51 cents in the past year, has struggled with losses and is exploring several avenues to keep the company afloat.
The company's net loss widened in the fiscal third quarter that ended Dec. 31 to $1 million, compared with $603,000 the previous year. Available working capital fell to $61,000 from the $1.3 million it had as of March 31, 2000.
The company also said in February, at the time it filed its third quarter results, that if it were not able to secure additional capital through loans or a secondary stock offering, "there is substantial doubt as to the company's ability to continue as a going concern."
Also on May 1, the company announced plans to seek a combination with VideoPropulsion Inc., a Genroco spinoff.
OTC spokesman Wayne Lee said that companies are not removed from the bulletin board for "quantitative" reasons such as a low stock price. But he said companies can be removed for failing to file financial statements in a timely manner with the Securities and Exchange Commission, or if two or more brokerage companies fail to make a market in the company's stock.
Genroco said it still expected to have shares traded through electronic pink sheets.
jsonline.com |
