Wednesday, August 13, 2008

Wave Systems finds another way to Nasdaq noncompliance

By Mass High Tech Staff

Wave Systems Corp. reports that it received notification from The Nasdaq Stock Market indicating that the company’s Class A common stock is subject to potential delisting because its bid price has closed below the minimum $1 per share requirement during the last 30 days.

Lee-based Wave Systems (Nasdaq: WAVX) reports that it has 180 days, or until Feb. 9, 2009, to regain compliance. However, as reported in a July 17 announcement, the company has until Aug. 18 to regain compliance relating to market value of its stock reaching $50 million or more on 10 consecutive days.

Wave Systems says it will not regain compliance by Aug. 18 and expects to appeal that upcoming delisting determination. Also, the company is considering a transfer from the Nasdaq Global Market to the Nasdaq Capital Market, which requires a market value of $35 million, Wave officials said.

Wave Systems, which was originally founded as Indata Corp. in 1988, develops client and server-based data security products.

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.

The company went public in 1999, and in 2007 reported a net loss of $19.9 million on revenue of $6.3 million.