Monday, June 2, 2008

Wave Systems wants to work out pending delisting

By Mass High Tech Staff

Security software developer Wave Systems Corp. reports that the Nasdaq Stock Market has notified the company that it failed to regain compliance for continued listing on Nasdaq’s Global Market.

Lee-based Wave (Nasdaq: WAVX) plans to request an appeal hearing before Nasdaq’s listings qualifications panel and expects the hearing to be held within six weeks. The company’s shares will continue to be listed on Nasdaq pending the outcome of the appeal, company officials said.

Wave would apply to have its common stock transferred to the Nasdaq Capital Market if the qualifications panel does not rule in its favor, company officials said.

The de-listing ruling comes one week after Wave revealed plans to raise about $1.7 million by selling to investors 2.1 million shares of its Class A common stock, the company’s third private placement in the last 12 months.

Wave Systems, which was originally founded as Indata Corp. in 1988, develops client and server-based data security products. The company employs 135 workers, CFO Gerard Feeney said.
In March, Wave Systems reported a private offering of its stock worth $3.3 million. In May 2007, it completed a similar private placement, raising $14.2 million.

During 2007, Wave Systems posted a net loss of $19.9 million on revenue of $6.3 million.