Feeds

Overland off Nasdaq non-compliance hook - for now

Nasdaq withdraws letter

Security for virtualized datacentres

Struggling data protection vendor Overland Storage has avoided being booted off the main Nasdaq index because of its weak share price and market capitalisation. It's now off the delisting hook "because the company currently meets an alternative maintenance standard."

On February 19 Overland received a Nasdaq Staff Deficiency Letter saying that it did not comply with the minimum shareholders' equity requirement of $10m for continued listing on the Nasdaq Global Market. It was given 5 calendar days from the date of the letter to submit a plan to regain compliance, or, alternatively, to elect to transfer listing of its common stock to the Nasdaq Capital Market. That's what the Overland board chose to do.

Now Nasdaq has belatedly realised that the deficiency letter doesn't apply because Overland meets an alternative listing maintenance standard, partly because of moves by Nasdaq itself: "Overland's compliance with the alternate maintenance standard is enabled in part by Nasdaq's current suspension of the standards relating to minimum bid price and market value of publicly held shares. The company was in a permitted re-compliance period for the minimum bid price standard at the time those standards were suspended, thereby extending the re-compliance period for the length of the suspension."

Are we to interpret this as saying that Nasdaq sent the Feb 19 deficiency letter in error? It would appear its own rules are too complex for it to interpret them correctly.

Nasdaq Global Market rules require a company's share price (minimum bid price) be consistently higher than $1 and that its market capitalisation be higher than $10m. Overland's share price fell below the bid price requirement and it received a notice of delisting letter in October last year. Overland decided to do a reverse stock split and get its share price above the $1 benchmark by adding shares together so that a summed number of shares would have a value above the dollar mark.

This was the plan when it received the market capitalisation deficiency letter on February 19.

Overland is still on the hook for the minimum share price requirement, and the reverse stock split is still expected to be the answer to that problem. The shares are currently trading at $0.24 and the company is capitalised at $3.07m. A 5-way reverse split would take the shares to $1.20 - not a lot of headroom for a deepening or prolonged recession there - whereas a 10-way split would take them to $2.40, which looks healthier. The actual split number has not been revealed by Overland yet.

Overland has recently undergone several rounds of restructuring and has appointed a new CEO, Eric Kelly, to help it trade its way out of the mire. The company may still transfer to the Nasdaq Capital Market with its less onerous requirements but its ticker identification of OVRL would not change. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.