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FalconStor Software stock to be delisted Monday from Nasdaq

Todd Brooks, CEO of FalconStor Software, on Aug.

Todd Brooks, CEO of FalconStor Software, on Aug. 18, 2017. Photo Credit: FalconStor

FalconStor Software Inc.’s stock will be delisted from the Nasdaq Capital Market on Monday, the company disclosed in a government filing.

Shares of Melville-based FalconStor, a maker of data storage management software, tumbled 23 percent, or 10.5 cents, to 34.5 cents on Friday. They have fallen about 65 percent in the last 12 months.

FalconStor shares have gyrated in recent weeks, spiking as high as 99 cents in intraday trading on Sept. 11, according to Google Finance. They climbed after a management shake-up in August in which Todd Brooks was named the new chief executive, and after purchases of FalconStor stock by ESW Capital LLC, an Austin, Texas, private equity company with links to Brooks.

ESW has a 14.4 percent stake in FalconStor, based on data from Bloomberg and an August 23 government filing. Brooks formerly was an executive of companies affiliated with ESW.

Shares of the company will trade on the OTC Markets Group Inc.’s OTCQB Venture Market after delisting from Nasdaq, FalconStor said. The OTCQB is one of three market tiers of the OTC Markets and has less stringent requirements than the Nasdaq Capital Market.

In a Thursday filing with the Securities and Exchange Commission, FalconStor said it received notice of the delisting on Thursday from the Nasdaq Hearings Panel.

FalconStor went before the panel on June 29 after Nasdaq notified the company it was not in compliance with the minimum bid price and the minimum market value of listed securities, according to the filing.

FalconStor instituted a cost-cutting program, trimming almost 70 employees as of June 30 from a workforce of 166 full-time and part-time employees on Dec. 31.

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