ViryaNet faces delisting
Nasdaq has threatened for the third time this year to delist Southboro-based ViryaNet Ltd. from its exchange for having too little shareholder equity.
The company plans to meet with the exchange on January 4 to outline how it will achieve it $2.5 million, minimum equity requirement for continued listing.
After acknowledging the receipt of the Nasdaq letter, ViryaNet promptly announced plans to convert $500,00 of its debt into Preferred A Shares of the company at a price of $1.53 per share. Jerusalem High-tech Founders Ltd. will receive the 326,797 shares under the proposed plan. The preferred shares can be converted into regular shares on a 1-to-1 basis, the company says.
It is unclear how the debt conversion plan will affect ViryaNet’s status with Nasdaq. Shareholders will decide whether to approve the plan at their December 29 meeting.
Nasdaq in February first notified the Israel-incorporated software maker that it had less than the minimum $2.5 million in shareholder equity. After appealing the decision, ViryaNet was able to increase that equity and get back in Nasdaq’s good graces.
However, in July, Nasdaq threatened for a second time to delist the company - this time after its stock price fell below the $1 minimum required by the exchange. ViryaNet has remained on the exchange, presumably under an appeals process - the company declined to return repeated phone calls about the July decision. Its stock trades currently around $0.85.
The Worcester Business Journal wrote about local companies struggles to meet Nasdaq requirements in the Oct. 2 cover story, Pandora’s market.
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