Facing a real chance that the Nasdaq stock exchange could delist its stock in the near future, Shelton integrated circuit maker TranSwitch said today that it intends to pulled the listing voluntarily.
The exchange warned TranSwitch in December that its closing bid price had fallen below $1 for 30 consecutive days and in February that its stockholders’ equity fell below a required threshold of $2.5 million. Both carry the potential for delisting.
On July 11, the company made a presentation appealing a determination that its stock would be delisted on June 17. It said the decision to pull the listing was reached after a review of Nasdaq’s warnings, the exchange’s rules and regulations, the benefits of maintaining the listing, the company’s share price and the feasibility of maintaining the listing in light of “pressing cash needs and limited financing opportunities.”
TranSwitch has managed to raise some capital, announcing today the sale of nearly 10 million shares of its stock, worth $2.5 million, to Ilex Partners LLC, which is run by hedge fund manager Michael Steinhardt.
The company said it expects to be listed on the OTCQB tier of the OTC Markets.
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