Uniroyal delisted from Nasdaq
Companies listed on the main Nasdaq exchange must maintain a share price in excess of $1.00. Uniroyal’s shares have been trading below this level since early January of this year, down from a high of around $10 in mid April 2001. The closing price of Uniroyal shares on June 17 was $0.21.
De-listing is a potentially disastrous event, as it makes it extremely difficult to raise new capital via traditional outlets. Uniroyal is looking for potential buyers for its coated fabrics division and also for its SiC subsidiary, Sterling Semiconductor, after the proposed deal with Umicore fell through (see Umicore deal to buy Sterling is off).
In order for Uniroyal’s stock to remain listed on the Nasdaq SmallCap market, the company will have to demonstrate compliance with the minimum $1.00 per share requirement by August 21, 2002. Uniroyal may be eligible for an additional 180-day grace period if it meets the initial listing criteria for the Nasdaq SmallCap Market , namely to have stockholders equity of $5 million, market capitalization of $50 million or net income from continuing operations of $750,000 in the most recently completed fiscal year or in two of the last three most recently completed fiscal years.
