The Nasdaq Stock Market has notified Metalink Ltd. (Nasdaq: MTLK), a developer of wireless local area network processors, that it is not in compliance with listing requirements for the Nasdaq Capital Market, because the closing bid price for the company's shares has been less than $1.00 for thirty consecutive business days.
This is not Metalink's first non-compliance notification; it received a similar warning last year, which it appealed.
Metalink has 180 days, until April 11, 2011, to regain compliance with the bid price requirement before its shares will be delisted from Nasdaq. To regain compliance, the bid price for the shares must be at least $1 per share for at least ten consecutive business days.
A technical solution to the problem is a reverse split of the shares.
Metalink's share price closed at $0.97 yesterday, giving a market cap of $2.6 million. The share price is but a fraction of its IPO price of $12 in 1999, and $45 at the secondary offering. Since the company has since made a 10:1 reverse split in its shares, this means that the IPO price was equivalent to $120 per current share, and that the secondary offering price was $450 per current share. The company's market cap has tumbled 99.8% since the secondary offering.
Published by Globes [online], Israel business news - www.globes-online.com - on October 19, 2010
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