Mark the date July 14th 2015 Root, Blue and others concerned about compliance....from the NAZ site
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If a company trades for 30 consecutive business days below the $1.00 minimum closing bid price requirement, Nasdaq will send a deficiency notice to the company, advising that it has been afforded a "compliance period" of 180 calendar days to regain compliance with the applicable requirements.
Thereafter, if such a company does not regain compliance with the bid price requirement a second 180-day compliance period may be available. A company listed on the Nasdaq Capital Market may be eligible for an additional 180-day compliance period if it meets the market value of publicly held shares requirement for continued listing, all other initial inclusion requirements for the Capital Market, except for the bid price requirement, and provides written notice that it intends to regain compliance with the bid price requirement during the second 180-day compliance period, by effecting a reverse stock split if necessary."
It looks like both of you hit the nail on the head. The problem facing wave going forward is the share count that exists now. They will not be in compliance with either once the 30 days expires. There is no way the stock becomes compliant without any revenue coming in at this point, and if they have to use the shelf that only drags the price lower. The RS becomes the only real choice beside repurchasing shares-but that would just remove shares from the float and sans news would probably not raise the price enough to become compliant
If the stock falls a mere .14 from here to mid July a RS 1:2 barely gets them into compliance for either requirement with 45.9 shares outstanding as of now! There will be some naysayers who will say it cannot happen, but there isn't any other way outside of revenues. We saw and called this before and were laughed out of the building. I think even a strategic buy in sans revenue news might not be enough.
It's been said before but I really think this saga is going to turn definitively one way or the other before Memorial Day.
The leash is short and I can't believe you will have the support of even this shareholder base staring another RS down this year should it be needed.
AI
