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Avistar's Black Friday news
Avistar Communications, a company incorporating its video solutions into larger UC packages from other software vendors as well as offering its own UC video conferencing solution, announced it had received a Nasdaq delisting warning on November 21. The company's press release went out on Friday - yes, "Black Friday" - November 28.
Under Nasdaq rules a company must have at least $2.5 million in stockholders' equity, $35 million in market value of listed securities, or $500,000 of net income from continuing operations for the most recently completed fiscal year, or two of the three most recently competed fiscal years.
Avistar has 30 days to comply with the $35 million provision by recording a closing stock price of $1.02 or higher for a minimum of 10 business days. If the stock can't mange that, Nasdaq sends over another notice and Avistar gets the right to drag it out in appeals if Nasdaq's review panel allows.
According to Avistar, they got a recent contract with IBM that provided a $6 million upfront payment, with $3 million received in November and ongoing royalty payments on product sales.
If it's any comfort, Avistar isn't alone in its stock market listing woes. Vonage received a delisting notice from NYSE in October, but the company has 6 months to boost its stock price above $1 per share.
For more:
- Read the MarketWatch press release dumped on Black Friday. Release.
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Comments
Posted by Anonymous | December 3, 2008 - 11:42am
Avistar's delisting from Nasdaq has little to do with what is going on in the market. They managed to escape a previous potential delisting round 8 months ago and have gone through a few previously. They lack revenue predictability and trade volume. The stock is a pure specualtor's stock given the amount held by insiders, which is over 50%. It is therefore desirable for them to get ejected and either turn private or be represented on a minor exchange, to fix their issues.
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