Wave Systems Corp. (fka WAVXQ)

[zen 88]

barge....You didn't see this?


This, IMO, is precisely what Wave is doing.

From BerthaB:

If you follow this along through the "Hearing" part of the process (pasted below), you can see that Wave can obtain an additional 180 days to implement the reverse split by:

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a) waiting for the Delisting Letter

b) requesting a Hearing (at a cost of $5000)

c) proposing the reverse split at the hearing

d) executing the reverse split (if necessary) no later than 180 days from the date of the Delisting Letter.
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IMHO, this scenario seems much more likely (based on past experience) than some miraculous increase in share price over the next 9 business days (though I would love to be wrong!).

So I expect that we will see Wave announce that they have received a Delisting Letter, by July 12.

And THEN we have 6 months to get our share price back up over $1 for 10 days, assuming that NASDAQ approves of the plan.

The good news from all of this is that it potentially buys us another 180 days to potentially avoid the reverse split.

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The Delisting Process

1. Deficiency Notice: If a company listed on the NCM fails to meet the minimum bid price requirement for a period of thirty consecutive trading days, it can expect to receive a deficiency notice from NASDAQ. The deficiency notice will identify the listing deficiency and will provide that the company has a period of 180 calendar days during which to regain compliance with the continued listing requirements. In order to regain compliance (if the deficiency is based on the failure to maintain the minimum bid price), the company’s closing bid price must be at or above $1.00 for a minimum of ten consecutive trading days during such period.

Within four business days of the receipt of the deficiency notice, a company must publicly disclose the receipt of the deficiency notice by filing an 8-K with the SEC. The 8-K must disclose the date the deficiency notice was received, describe the listing requirement the company has failed to satisfy and detail any action it plans to take in response to such deficiency notice.

NASDAQ maintains a list of non-compliant companies which is updated daily and posted at www.nasdaq.com.

2. Additional Compliance Period for NCM Listed Companies: If a company listed on the NCM is unable to regain compliance with the $1.00 minimum bid price requirement within the initial 180 day period, it will receive a second 180 day grace period provided the company (a) has at least $1 million in market value of shares held by non-affiliates and satisfies all of the other listing requirements for initial listing on the NCM (except the bid price requirement) and (b) notifies NASDAQ of its intent to cure the listing deficiency. If it does not appear to NASDAQ that it is possible for the company to cure the deficiency, this second grace period will not be granted.

3. Delisting Letter: If a company is unable to regain compliance within the grace period (including the additional grace period, if available), NASDAQ will issue a delisting letter. Within four business days of the receipt of the delisting letter, the company must publicly announce the receipt of the letter by filing an 8-K with the SEC.

4. Hearing: Upon receipt of a delisting letter the company will have seven days to submit a written request for a hearing before the NASDAQ Listing Qualifications Panel. The timely submission of this request will stay the delisting process pending the decision of the panel. At a hearing the company will be required to present a plan to regain compliance with the continued listing standards. The plan of compliance should describe the manner in which the company will regain and maintain compliance with the NASDAQ continued listing standards. NASDAQ has stated that the plan should include the implementation of a reverse stock split in the near term – no later than 180 days after receipt of the delisting letter. In determining whether to provide the company with the opportunity to implement its plan of compliance, the panel may consider other factors such as the company’s fundamental financial strengths and weaknesses, the overall market, the company’s historical bid price and impending corporate actions. Fees for a hearing range up to $5,000.

Source: http://www.mbbp.com/resources/business/nasdaq-delisting.html