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FalconStor says Nasdaq has accepted reverse stock-split plan

FalconStor Software is located inside 2 Huntington Quadrangle

FalconStor Software is located inside 2 Huntington Quadrangle in Melville. ( Nov. 8, 2011) Photo Credit: Steve Pfost

The Nasdaq Stock Market has accepted a plan by FalconStor Software Inc. to regain compliance for listing on the exchange, but set a Nov. 20 deadline, the Melville company said in a government filing.

Shares of FalconStor climbed 2.6 percent to close at 20 cents Thursday. The Securities and Exchange Commission document was filed after the market close Wednesday.

The software data storage company is out of compliance with requirements for the Nasdaq Capital Market — one of three Nasdaq market tiers — including a minimum $1 per share stock price for 30 consecutive days.

In July, the 23-year-old company said it would seek stockholders’ approval for a reverse stock split — shrinking the number of shares outstanding to boost the per-share price — and other measures aimed at returning it to compliance.

The company said in a previous government filing that delisting from Nasdaq would make it more difficult to raise money through the sale of equity securities.

In June, the company said president and chief executive Gary Quinn was stepping down and being replaced by Todd Oseth, a former president and chief executive of Denver-based Intermap Technologies, effective July 1.

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