On the Jan. 30 deadline, it will qualify to transfer to a Capital Market listing with another 6 months on Nasdaq, with no adverse effect on trading.
"If we do not regain compliance with the rule by January 30, 2017, we may be eligible for an additional 180 calendar day compliance period. To qualify for this additional time, we would need to transfer the listing of our common shares to The NASDAQ Capital Market by applying for such transfer, meeting the continued listing requirement for market value of publicly held shares, and meeting all other initial listing standards, with the exception of the bid price requirement."
The continued listing requirement for market value of publicly held shares on the Capital Market tier is only $1 million. The only significant hurdle of the other initial listing standards is the $5 million stockholder equity requirement, which the company easily surpasses on its last quarterly report @ ~$21 million. Nasdaq goes by the last filed balance sheet, which, on Jan. 30, will be the current one, since the next financial report won't be due til 3/30/17.
The company will not need to reverse split to stay listed past Jan. 30; however, I am concerned that it has the potential to do it anyway. I believe that all SEC regulated public companies must have shareholder approval before the company can execute a reverse split. The wording in the 6-K filing sounds like the company already has this. Can anyone refer to the SEC filing that shows the shareholder vote authorizing this? I can usually find proxies easily on American companies, but these foreign filers don't have the same filing requirements, and I can't easily find it. When was the last annual shareholder meeting vote?
