Be to appeal against Nasdaq de-listing
Just in case Palm deal falls through
Alternative operating system vendor Be has been threatened with having its stock booted off Nasdaq.
Under the stock exchange's rules, if a company's shares fall below $1 for more than 30 consecutive trading days, the company risks being de-listed. It has 90 more days to get its shareprice back over $1 - or else.
And that's exactly what has happened to Be. Its 120 days are up and so its stock is set to be yanked from Nasdaq's listing.
Oddly enough, Be is planning to appeal against the decision. Since it plans to shut up shop just as soon as Palm's $11 million acquisition of its technology and other assets is done, what does it matter if it drops off Nasdaq?
One reason for the appeal is that it keeps Be on the Nasdaq list while its request is judged. While it's on the list, it's stock can still be traded - though clearly there's not very much demand for its shares at the moment - and directors' shareholdings continue to have a nominal value.
This is particularly true if the Palm deal doesn't happen, either because Palm pulls out - as it did with its proposed acquisition of Extended Systems - or Be's shareholders vote against the deal. Presumably Be fears they will nix the deal if Nasdaq delists the company. ®