New York, Aug 28, 2018 (Issuewire.com) - Investors in Atlanticus Holdings Corporation (Nasdaq: ATLC) got bad news after the firm disclosed in an 8K filing that the firm did not regain compliance with a Listing Rule and that as a result they may now be delisted.
Atlanticus Holdings Corporation had been notified by the Listing Qualification staff of The NASDAQ Stock Market in February that the market value of publicly held shares of the Company had been below the minimum value for the previous 30 consecutive business days, which is required for continued listing on The NASDAQ Global Select Market.
The NASDAQ provided the Company with 180 calendar days, or until August 20, 2018, to regain compliance with the Listing Rule, during which time the market value of the Companys publicly held shares must have been at least $15,000,000 for a minimum of 10 consecutive business days.
The Company did not regain compliance with the Listing Rule and accordingly, on August 21, 2018, the Company received a letter from the Listing Qualification Staff of NASDAQ notifying it that the Companys common stock would be delisted from The NASDAQ Global Select Market on August 30, 2018 unless the Company requests a hearing before the NASDAQ Hearings Panel (the Hearings Panel).
This week, the Company will be requesting a hearing before the Hearings Panel and will attempt to present its plan of compliance and a request for a further extension of time. There is no guarantee that the Hearings Panel will grant Atlanticus request.
The stock lists on the NASDAQ Global Select Market under the symbol ATLC.
The Company is actively considering alternatives that it believes will allow it to achieve compliance with the Listing Rule. Alternatively, the Company may apply to transfer its listing to The NASDAQ Capital Market. Some firms in this situation often take measures to avoid delisting.
According to Investopedia, sometimes companies that want to inflate the prices of their stock, do a reverse stock split to elicit emotions in investors. In either case, Atlanticus says shares of the company would be impacted if the company is unable to regain compliance.
If our common stock is delisted, the liquidity of our common stock would be adversely affected and the market price of our common stock could decrease. The delisting of our common stock from NASDAQ also would make it more difficult for us to raise additional capital.
The company also reminds shareholders that they have the ability to issue preferred stock, warrants, convertible debt and other securities without shareholder approval.
"Our common stock may be subordinate to classes of preferred stock issued in the future in the payment of dividends and other distributions made with respect to common stock, including distributions upon liquidation or dissolution. Our articles of incorporation permit our Board of Directors to issue preferred stock without first obtaining shareholder approval. If we issue preferred stock, these additional securities may have dividend or liquidation preferences senior to the common stock. If we issue convertible preferred stock, a subsequent conversion may dilute the current common shareholders interest. We have similar abilities to issue convertible debt, warrants and other equity securities."
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Source :Atlanticus Holdings Corporation
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