Feeds

Another Overland Nasdaq delisting threat

Company now not worth enough

Top three mobile application threats

Overland Storage was told by Nasdaq on December 15 that its stock would be delisted because its share value was below Nasdaq's $15m minimum.

Overland shares are currently trading at $2.0, giving the company a market capitalisation of $12.68m. Delisting from Nasdaq would affect Overland's creditworthiness, potentially increasing its costs and ability to raise capital. The company has had a 90-day period to regain compliance with this particular Nasdaq rule, which expired on December 14. Overland filed an appeal against the ruling on December 18. This halts the delisting until the Nasdaq Hearings Panel issues a ruling on the appeal.

The Panel can grant Overland an exception for up to 180 days after the Nasdaq Staff’s initial delisting decision to regain compliance with the relevant Nasdaq Global Market standard. Alternatively, it could transfer listing to the Nasdaq Capital Market, but Overland stock does not currently meet the continued listing requirements for the Nasdaq Capital Market, either.

If Overland's appeal fails then it has a fallback process it could follow, which would involve an appeal to the Nasdaq Listing and Hearings Review Council. This body can grant an exception for up to 360 days after the Nasdaq Staff’s initial delisting decision.

Overland needs to get its share price consistently up above $2.37 for it to regain compliance with the $15m minimum company value rule. It has sidestepped a different Nasdaq rule concerning shares having a minimum value of a dollar by engineering a reverse stock split earlier this month. That tactic did not help with the company's market capitalisation and the company is seeking a longer period in which to demonstrate improved trading. Hopefully, this will see a stronger share price increasing the company's value above the $15m.

If Overland CEO Eric Kelly and his team can trade their way up and out of this Nasdaq trap then that would mark a significant turnaround in the beleaguered company's fortunes. To do this they have to have time and hopefully the appeal panel, seeing the company has a new executive team with a strong focus on the sales and marketing side, will grant the time requested. ®

Application security programs and practises

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Microsoft: We're making ONE TRUE WINDOWS to rule us all
Enterprise, Windows still power firm's shaky money-maker
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.