Wednesday, August 20, 2008

Nasdaq has more bad news for Wave Systems

By Mass High Tech Staff

Wave Systems Corp. reports that it has received notification from the Nasdaq Stock Market indicating that Wave had failed to regain compliance with the market value rule for continued inclusion on the Nasdaq Global Market.

Lee-based Wave (Nasdaq: WAVX) plans to request an appeal hearing and expects the hearing to be held within six weeks, company officials said.

The company’s shares will continue to be listed on the Nasdaq Global Market pending the outcome of the appeal. In the event of an unfavorable determination by the listing qualifications panel, the company would apply to have its common stock transferred to the Nasdaq Capital Market.

The company may also make such application prior to the hearing of the appeal. If the application is approved, Wave would have until Feb. 9 to regain bid-price compliance, officials said.

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

Wave Systems completed an initial public offering in 1999, and in 2007 reported a net loss of $19.9 million on revenue of $6.3 million.