Cyanotech faces Thursday deadline to avoid delisting
By Sean Hao
Advertiser Staff Writer
Big Island biotech company Cyanotech Corp. has three more trading days to prove its worth to the Nasdaq or face the ignominious fate of delisting.
The company yesterday said it received notice from the exchange warning that Cyanotech stock will be dropped to the less prestigious OTC Bulletin Board if its per share price doesn't close at or above $1 for 10 consecutive trading days by a Thursday deadline. The notice came in response to an appeal by Cyanotech in September to remain listed despite not meeting the exchange's $1 minimum.
However, because of improved financial results, shares have rebounded since the appeal. As of yesterday, Cyanotech had closed at or above $1 for seven consecutive days.
Yesterday, Cyanotech shares closed down 9 cents at $1.06 a share on the Nasdaq SmallCap Market. Still, should shares close below $1 on Monday, Tuesday or Wednesday the stock would automatically be transferred to the OTC Bulletin Board.
Companies that trade on the OTC Bulletin Board are largely ignored by institutional investors and most individual investors.
Cyanotech could still appeal, though such a move would not delay the delisting. For Cyanotech, which already has lost its Nasdaq National Market listing, being relegated to the OTC Bulletin Board would hurt efforts to attract investors and boost share price.
"I don't really want to comment on that," said Jeffrey Sakamoto, Cyanotech's vice president for finance, concerning the possibility of being delisted. "In our previous announcements we've said our focus is on profitability and operations."
The Kona-based maker of microalgae-based dietary supplements has lost money in all but three quarters since June 1997, and until this month, had not closed above $1 since May 2002.
Through September, 175 companies were delisted by Nasdaq for noncompliance with various regulations. The OTC Bulletin Board is not part of Nasdaq, but rather is an electronic quotation service operated by the National Association of Securities Dealers.
Reach Sean Hao at shao@honoluluadvertiser.com or 525-8093.
