Falconstor Software seeks to move from Nasdaq to OTC market
Falconstor Software, a Melville provider of data protection software and services, will not appeal its stock's delisting from the Nasdaq Stock Market and is applying to move its trading to an OTC (over-the-counter) market, the company said. Credit: Steve Pfost
Falconstor Software Inc., a Melville provider of data protection software and services, will not appeal its stock’s delisting from the Nasdaq Stock Market and is applying to move its trading to an OTC (over-the-counter) market, the company said.
The company said in a news release Wednesday that the Nasdaq had given it a May 22 deadline to bring its share price to a minimum of $1. On Thursday, Falconstor shares closed down 7.8 percent to 31 cents.
The company said it also was not compliant with the Nasdaq’s minimum stockholders’ equity requirement, which has a June 6 deadline.
Falconstor trades on the Nasdaq Capital Market, one of Nasdaq’s three market tiers. The Nasdaq Capital Market, focused on small-capitalization companies, requires a minimum of stockholders’ equity of $2.5 million, according to its listing guide. Stockholders’ equity is a statement of a company’s assets minus liabilities.
Falconstor said it applied to the OTC Markets Group, based in New York, for a listing on one of its three market tiers.
The change in trading venue will “ensure a smooth transition in the trading of its common stock and avoid a time consuming and expensive appeal process,” the release said.
The company received an initial delisting notice from Nasdaq in November.
In the quarter ended March 31, Falconstor posted revenue of $6 million versus $7.4 million in 2016 quarter. Net loss narrowed to $1.1 million from $4.3 million in the year-earlier period.
Ken Schachter covers corporate news, including technology and aerospace, and other business topics for Newsday. He has also worked at The Miami Herald and The Jerusalem Post.
Sarra Sounds Off Ep. 35: EI baseball, girls lacrosse and plays of the week On the latest episode of "Sarra Sounds Off," we look at East Islip baseball's inspirational comeback story, Jared Valluzzi has the plays of the week and Tess Ferguson breaks down the top defensive players in girls lacrosse.
Sarra Sounds Off Ep. 35: EI baseball, girls lacrosse and plays of the week On the latest episode of "Sarra Sounds Off," we look at East Islip baseball's inspirational comeback story, Jared Valluzzi has the plays of the week and Tess Ferguson breaks down the top defensive players in girls lacrosse.
