30 September 2010


Emcore receives NASDAQ warning for sub-$1 share price

On 23 September, Emcore Corp of Albuquerque, NM, USA, which makes components and subsystems for the fiber-optic and solar power markets, received a notification from the NASDAQ Stock Market indicating that the minimum bid price of its common stock has been below $1 per share for 30 consecutive business days and, as a result, it is not in compliance with the requirement for continued listing set forth in NASDAQ Listing Rule 5450(a)(1). The NASDAQ notice has no immediate effect on the listing or trading of the firm’s common stock. 

Under NASDAQ Listing Rule 5810(c)(3)(A), Emcore has a grace period of 180 calendar days (until 22 March 2011) in which to regain compliance with the minimum bid price rule. To regain compliance, the closing bid price of its common stock must meet or exceed $1 per share for a minimum of 10 consecutive business days during the 180-day grace period.

If Emcore does not regain compliance before 22 March 2011, NASDAQ will provide written notice that its securities are subject to delisting. The firm can then appeal this determination to a NASDAQ Listing Qualifications Panel, which would stay any further delisting action pending its final decision. Alternatively, Emcore may be eligible for an additional grace period if it meets the initial listing standards, with the exception of bid price, for the NASDAQ Capital Market, and it successfully applies for a transfer of its securities to that market. Such a transfer would provide Emcore with an additional 180-day period to regain compliance with the minimum bid requirement.

Emcore says that it will consider available options, including — but not limited to — a reverse stock split, to regain compliance with the continued listing standards of NASDAQ.

*Previously, on 18 August, Emcore received a letter from NASDAQ saying that it was not in compliance with continued listing requirements under NASDAQ Listing Rule 5250(c)(1), the firm had not filed its Form 10-Q report for its fiscal third-quarter 2010 (to end-June) with the US Securities and Exchange Commission (SEC) on time. Emcore had said on 16 August that filing of its quarterly report was delayed because it needed more time to complete a review of its accounting for certain inventory write-downs and the allowance against a specific account receivable that the firm has determined should be recorded. Emcore said that it intended to file the report “as soon as practicable” upon completion of its review. The firm is required to submit, by 18 October, a plan to regain compliance with continued listing requirements under NASDAQ Listing Rule 5250(c)(1).

See related items:

Emcore postpones reporting June-quarter results

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