NUKO Information faces Nasdaq delisting
November 12, 1997 07:03 AM
SAN JOSE, Calif., Nov 12 (Reuters) - NUKO Information Systems Inc said Wednesday that based upon its June 30, 1997 10-Q/A filing, the company did not meet the net worth requirements necessary to maintain its listing on the Nasdaq National Market.
NUKO said that ongoing efforts to obtain equity financing in order to meet equity requirements for quotation of its common stock on Nasdaq have not been consummated.
The company said it has initiated several actions to meet the net worth requirements but will not satisfy the requirement by the time NASDAQ conducts its hearing on the matter, scheduled for November 13.
If the company is delisted from the National Market System, trading of the company stock will be conducted on the OTC Bulletin Board or the "pink sheets," maintained by the National Quotation Bureau.
The net worth of the company, as defined by NASD Rules, was hurt in the second quarter with the reclassification of $4,112,837 of equity, when that amount of preferred stock was classified as "mezzanine" financing.
This accounting treatment was made necessary by the redemption features and conversion ceiling on preferred stock.
The company also noted that continuing losses throughout 1997 have reduced shareholder equity.
NUKO said it initiated a proxy filing to remove the conversion ceiling, which would reclassify the mezzanine amount back to equity.
((New York Newsdesk 212-859-1610)) REUTERS" |
