To: Frank Buck who wrote (1269 ) 1/27/1998 7:37:00 AM From: Cisco Read Replies (2) | Respond to
Frank, POSSIBLE DELISTING OF COMMON STOCK FROM NASDAQ; RISKS RELATING TO LOW-PRICE STOCKS. The Common Stock trades on the Nasdaq National Market under the symbol "ACMI." The Commission and the National Association of Securities Dealers, Inc. have imposed certain standards for the maintenance of such listings, including maintaining at least $4.0 million in net tangible assets for issuers such as the Company which have sustained continuing losses from operations and/or net losses in three of its four most recent fiscal years. In addition, continued inclusion requires two market makers and a minimum bid price of $1.00 per share. On November 14, 1997, Nasdaq notified the Company that Nasdaq is reviewing the eligibility of the Common Stock for continued inclusion on the Nasdaq National Market because at September 30, 1997 the Company's net tangible assets and equity were below the $4.0 million threshold (by approximately $500,000). In accordance with Nasdaq's request, on December 5, 1997, the Company provided Nasdaq with the Company's proposals for achieving compliance. On December 18, 1997, Nasdaq notified the Company that the Company's request for continued listing on the National Market had been denied. The Company requested and was granted an oral hearing, scheduled for January 29, 1998, before a panel approved by the National Association of Securities Dealers, Inc. Board of Governors. On January 13, 1998, the Company submitted toNasdaq for the panel's consideration written information updating the Company's progress toward achieving compliance with the continued listing criteria. Approximately, seven to ten days following the hearing, the panel, in its discretion, may (i) delay a decision on delisting to allow the Company additional time to complete steps to achieve compliance, or (ii) delist the Common Stock from the National Market. The Company has requested that, if the panel determines to delist the Common Stock from the National Market, the Common Stock be included on the Nasdaq Small Cap Market and that the panel waive any deficiency the Company may have in achieving the initial listing criteria therefor. The panel, in its discretion, may grant or deny such request. There can be no assurances that the panel will allow the Company additional time to achieve compliance or that, if such time is granted, that the Company will be able to achieve compliance within such time period. If the panel determines to delist the Common Stock from the National Market, there can be no assurances that the panel will grant listing on the Small Cap Market, which may require waiver of certain initial listing criteria, of which there can be no assurances. If the Common Stock is not listed on Nasdaq, trading, if any, in the Common Stock would thereafter be conducted in the non-Nasdaq over-the-counter market. Consequently, investors could find it more difficult to dispose of, or to obtain accurate quotations as to the market value of the Company's Common Stock. In addition, delisting could result, in certain circumstances, in the Common Stock becoming characterized as a low-priced or "penny" stock. In such event, the market liquidity for the Company's securities could be severely affected as the Common Stock would be subject to compliance with The Securities Enforcement and Penny Stock Reform Act of 1990. The regulations governing low-priced, so-called "penny stocks" could limit the ability of broker-dealers to sell the Company's Common Stock and, in turn, the ability of stockholders to sell their Common Stock. ¯
