A123 Faces NASDAQ Delist Threat
A week after A123 Systems made a controversial deal with a Chinese firm that would infuse it with funds to keep operating, the lithium-ion battery maker is facing the threat of being delisted from The NASDAQ Stock Market.
According to filings with the U.S. Securities and Exchange Commission (SEC), A123, which is based in Waltham and has operations in Hopkinton and Westborough, received a letter from NASDAQ on Tuesday, notifying the firm that its common stock had closed beneath the market's minimum of $1 per share for 30 days. Listed as AONE, the stock closed Wednesday at 38 cents per share. A year ago, it had closed at $4.01. It's a 52-week high is $5.13.
A123 has until Feb. 19 to get its stock price up. If its stock closes at $1 per share or higher for at least 10 consecutive trading days before the February deadline, NASDAQ will notify the company that it has regained compliance.
According to the SEC filing, if A123 doesn't meet the $1 requirement in time, but continues to meet other requirements for listing on The NASDAQ Capital Market, it could be eligible to apply to transfer its securities there. In order to qualify, A123 will need to provide written notice of its intention to bring the stock price back up within another 180-day period, using a reverse stock split, if necessary. If NASDAQ staff doesn't think A123 can meet the requirements in time, the stock will be subject to delisting.
Last week, the company inked a $465-million deal with Wanxiang Group, one of China's largest, non-government-owned companies, that would give the firm an 80-percent ownership stake in A123. The agreement came just after A123 reported a 53-percent revenue drop for the second quarter and losses of $82.9 million. The deal came under fire as A123 has received $249 million in federal stimulus money, with $120 million yet to be dispersed. Lawmakers and industry leaders have expressed concern that the deal with Wanxiang would allow jobs and the U.S. government funding to go overseas.
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