EMCORE gets good news from Nasdaq
APRIL 10, 2007 -- EMCORE Corp. (search for EMCORE) has received a notice from the Nasdaq Stock Market that the Nasdaq Listing Qualifications Panel has granted the company's request for continued listing on Nasdaq subject to certain conditions.
The extension is conditioned on the company filing both its Form 10-K for the fiscal year ended September 30, 2006 and its Form 10-Q for the quarter ended December 31, 2006 with the SEC by no later than May 10, 2007. While the company is making every effort to satisfy the terms of the extension, it says it can provide no assurances that it will ultimately be able to do so. If EMCORE can't meet the deadline, the company says it intends to request an additional extension from the panel prior to May 10.
EMCORE also announced that it has reached an agreement with holders of a majority in principal amount of its 5% Convertible Senior Subordinated notes due 2011, under which the noteholders agreed to waive until February 29, 2008 any and all defaults related to the company's failure to file the two forms on time. The company and the noteholders agreed, among other things, to amend the terms of the notes such that the interest rate of the notes increases to 5.5% from 5% and the conversion price is reduced from $8.09 to $7.01 per share. In addition, the noteholders granted the company the option to purchase 12% of the notes held by such noteholders. The effect on the company's stockholders will be a reduction in the indebtedness on the company's balance sheet with virtually no additional dilution to shareholders as a result of the change in the conversion price, EMCORE asserts. |
