The firm’s stock is being delisted because the stock’s bid price is trading under the $1.00 per share minimum bid price requirement set forth in NASDAQ Marketplace Rule 5550(a)(2).
On 10 May, after meeting with the NASDAQ’s Listing Rules Committee, Media Sciences was granted a temporary extension of time to comply with the $1.00 per share minimum bid price requirement.
According to Media Sciences, to have met the NASDAQ trading requirement it could have accomplished a reverse stock split increasing the price in excess of the $1.00 minimum, but determined that it is in the best interests of the business not to effect a reverse split.
Media Sciences expects that its common stock will be quoted on the OTC Bulletin Board and/or the Pink Sheets, but cannot give assurance that its common stock will be immediately available to be quoted on one or both quotation services upon suspension of trading on the NASDAQ Capital Market.
Michael Levin, Media Sciences’ President and CEO, said: “We are disappointed that we are being delisted from the NASDAQ Stock Market. Our focus continues to be on growing our business and while this might appear to be a set-back, I am very optimistic that the initiatives we have in place and the upcoming closing of our China acquisition will greatly enhance our business.
“We will continue to be accessible and keep shareholders and potential investors informed of our progress. We are currently in the process of closing the fiscal year and preparing our annual 10-K and fiscal 2010 financial press release. We anticipate announcing our 2010 fiscal results and hosting our conference call in the second half of September.”
Media Sciences announced that it was disappointed with its third quarter results earlier this year, when its consolidated gross profit fell 11 percent. The company also had to appoint a new CFO as Kevan Bloomberg resigned after a four-year career at the firm.
However, it has not all been doom and gloom at Media Sciences as The Recycler also reported that the manufacturer acquired Master Ink in April this year, and announced the sale of its 10 millionth ink stick.