To: Mr. Pink who wrote (32055 ) 4/12/1999 9:18:00 AM From: Clayleas Respond to of 33268
I was once silly enough to ignore the warnings of Mr. Pink and am very much poorer for it. Never again for me! Of course there seems to be an endless source of fools out there who have not learned that lesson. Mr. Pink, I've got to side with you on this one. RACE looks to have a long list of risks in the S3 that should not be ignored. Here's one I haven't seen very often:Risk of Losing Nasdaq National Market Listing Companies with securities listed on the Nasdaq National Market must satisfy certain maintenance criteria, including minimum net tangible asset and stock price requirements in order to remain listed. Our recurring losses have had a negative effect on shareholders' equity, and we did not meet the Nasdaq National Market net tangible assets requirement of $4 million on June 30 and September 30, 1998. In late September 1998, we received a notice of non-compliance from Nasdaq. We appealed the determination and a hearing on our appeal was held in mid-January 1999. We have not yet received the results of the hearing, and can give no assurance as to the outcome. In addition, our stock price is volatile and, during a six-week period in 1998, closed below the Nasdaq National Market minimum requirement of $1.00 per share. We may not be able to sustain compliance with the maintenance criteria of the Nasdaq National Market, the failure of which could result in the delisting of our common stock from such market. Termination of listing of the common stock would likely have a material adverse effect on the market price and liquidity of the common stock, and on our ability to raise additional capital. Delisting could also jeopardize certain secondary trading exemptions from state "blue sky" laws, further affecting liquidity of the common stock. In addition, we would be liable for substantial monetary penalties to the holders of the preferred stock in the event of such a termination of listing. Our failure to pay such penalties could also result in redemption of the preferred stock. > Look out on this one folks.