BOULDER CITY, Nev. (Jan. 25, 2010)—Polyurethane tire developer Amerityre Corp. will delist its common stock from the Nasdaq Stock Market Feb. 4 and said it intends to relist it on Nasdaq's Over The Counter Bulletin Board.
The move is in response to a notice from the Securities and Exchange Commission that Amerityre no longer meets the minimum requirements of Nasdaq's Equity Standard Listing Rule 5550(b), which requires firms on the Nasdaq to have a minimum of $2.5 million in stockholders' equity, $35 million market value of listed securities or $500,000 of net income from continuing operations for the most recently completed fiscal year or two of the three most recently completed fiscal years, Amerityre said in a filing with the SEC.
Amerityre was notified by the SEC on Oct. 5, 2009, that it was violating the rule, but at that time it submitted a plan to regain compliance and was granted until Jan. 19 to demonstrate compliance with the minimum requirements.
The company since has determined it cannot achieve compliance with the rule and therefore decided to file to delist.
Additionally, Amerityre was notified Sept. 16 it was not in compliance with Rule 5550(a)(2), because its stock had traded at less than $1 a share for at least 30 consecutive business days. Amerityre has until March 15 to rectify this, but the company said it can't determine “with certainty” that it would regain compliance.
Despite the Nasdaq issues, Amerityre said it believes its financial condition and operations are healthy and sustainable and that it should achieve higher revenues for the year ending June 30.
Amerityre reported a loss of $280,056 in the three months ended Sept. 30 on sales of $1.14 million.