Datatrak, the US-based eClinical specialist currently considering its future amid mounting financial losses, has received further warnings from Nasdaq about the company’s continuing eligibility for listing on the US exchange.
In June, Nasdaq informed Datatrak that it faced delisting unless the company complied with the exchange’s Minimum Bid Price Rule by 8 December 2008. For 30 consecutive business days leading up to 10 June 2008, the bid price of Datatrak common shares had closed below the minimum US$1.00 per share required for continuing inclusion on Nasdaq.
The company has now been notified that it does not currently comply with Nasdaq Marketplace Rule 4310(c)(3), which requires a minimum of $2,500,000 in stockholders’ equity. or market value of $35,000,000 in listed securities. or $500,000 in net income from continuing operations for the most recently completed fiscal year or two of the three most recently completed fiscal years. As such, the exchange is “reviewing the Company’s eligibility for continued listing on the Nasdaq Capital Market”, Datatrak noted.
To facilitate this review, Nasdaq has asked Datatrak to provide, on or before 3 September 2008, “a specific plan on how it will achieve and sustain compliance with all Nasdaq Capital Market listing requirements”.
Once the review process is completed, if Nasdaq determines that Datatrak “has not presented a plan that adequately addresses the issues noted in its letter dated August 18, 2008”, then Nasdaq staff will send the company written notification that its common shares will be delisted from the Nasdaq Capital Market. In this case, Datatrak adds, it may appeal against the delisting decision to a Nasdaq Listing Qualifications Panel.
