Shares of Israeli technology company Radcom tumbled 14% on Nasdaq yesterday, as of writing, after the company - which makes systems to test communications networks - announced that it would carry out a reverse split of its stock to avert being delisted from the New York exchange.
On September 12, 2007, Nasdaq's management advised Tel Aviv-based Radcom that it faced being tossed off the exchange because of failure to meet listing requirements. During the 30 days preceding the notification, Nasdaq explained, the company's stock had traded for less than $1, which is against the rules.
As is the Nasdaq exchange custom, Radcom received a 180-day grace period, which ended on March 10, 2008, to try to meet the listing requirements. That did not happen, and come March 11, Radcom received another missive from Nasdaq's management, warning again that it did not meet the minimal listing requirements because of its low share price, and therefore faced delisting.
Advertisement
Radcom says it will bring its proposal on the reverse split before its shareholders' assembly, and will ask the Nasdaq Listing Qualifications Panel to defer throwing it out until the shareholders can convene and vote. "However, there can be no assurance that the reverse share split will cause the company to regain long-term compliance with the minimum bid price requirement and that the panel will approve the company's request for continued listing," Radcom wrote in its notice to investors.
Its announcement evidently dismayed somebody: Shares of Radcom tumbled as much as 19% when it released the reverse-split notice.
During the last 12 months, the company's stock has lost 83%, reducing its market cap to $7.37 billion.
Haaretz.com, the online edition of Haaretz Newspaper in Israel, offers real-time breaking news, opinions and analysis from Israel and the Middle East. Haaretz.com provides extensive and in-depth coverage of Israel, the Jewish World and the Middle East, including defense, diplomacy, the Arab-Israeli conflict, the peace process, Israeli politics, Jerusalem affairs, international relations, Iran, Iraq, Syria, Lebanon, the Palestinian Authority, the West Bank and the Gaza Strip, the Israeli business world and Jewish life in Israel and the Diaspora.
