Orckit Communications Ltd. (Nasdaq: ORCT; TASE: ORCT) has been relegated from Nasdaq to the Bulletin Board. The new listing under the ticker OTCQB will come into effect tomorrow.
The relegation comes after a Nasdaq Listing Qualifications Panel decided on March 29 to transfer the company's listing to the Nasdaq Capital Market, and gave the company more time to reach compliance with the $2.5 million stockholders' equity requirement for continued listing on Nasdaq. The company notified Nasdaq that it would not meet the compliance date of June 27, and was informed in response that another extension would not be granted.
Orckit plans to appeal the decision to the Nasdaq Listing and Hearing Review Council. If the appeal is rejected, the company will apply to relist on Nasdaq if its financial condition improves sufficiently to enable it to meeting the conditions for listing.
Orckit facilitates telecommunication providers' delivery of high capacity broadband residential, business and mobile services over wireline or wireless networks.
In a separate development today, the Tel Aviv District Court approved the company's debt settlement with its bondholders. The settlement is due to come into effect next week. The conversion rate for the Series A bond has been reduced from NIS 63 to NIS 1.37 per share through July 21, after which it will rise to NIS 7.61 per share, and the conversion rate for the Series B bond will be reduced from NIS 10 per share to NIS 7.61 per share through July 11, and then cut again to NIS 1.83 per share, before reverting to NIS 7.61 per share on August 5.
Orckit founders, president Izhak Tamir and CEO Eric Paneth, have both notified the company that they will convert their bonds into share for a total of NIS 7.3 million.
Orckit's share price fells 3.85% at the opening on Nasdaq this morning to $0.33, giving a market cap of $38 million after falling 4.1% on the TASE to NIS 1.25.
Published by Globes [online], Israel business news - www.globes-online.com - on June 21, 2012
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