Companies facing NASDAQ delist or reverse splits in 2012

Dec 23, 2011 No Comments by
If companies are unable to push their bid price above $1 they either face delisting from NASDAQ to OTCBB or will require a reverse split to remain on NASDAQ. Most of the companies below face no meaningful upcoming catalysts to propel their bid price above $1. Which companies are in this category? I have 10 further companies on reverse split or OTCBB delist watch, following on from the 12 companies  in February 2011 and 7 companies in August 2011 that I put on watch  (Price per share as at the close of trading, December 22, 2011).
Note the following is my opinion only and not a recommendation to hold a long or short position.
NVGN ($0.50) – Reverse split likely early January 2012. Has until 17 January, 2012 to push its bid price above $1, thus resulting in a reverse split most likely during the first week of January.
EDIT: 28 Jan 2012 – Company effected reverse split early January 2012 as predicted.
CYTR ($0.30)  – Delist to OTC February or reverse split late January/early February 2012.
EDIT: 24 Feb 2012 – Company received final notice from NASDAQ that it would be delisted on Feb 22 unless it appealed. The company is still listed on NASDAQ so one can assume an appeal was filed. According to NASDAQhearings are typically scheduled 30 to 45 days from the company’s request.The Panel generally issues a written decision approximately 35 days after the hearing, but the company could receive a written decision sooner. A decision is now likely mid-late 2Q 2012.
BNVI ($0.27)- Likely late 1Q reverse split. May get some breathing space to 2Q if it appeals. Likely to opt for reverse split rather than delist to OTC as it needs significant cash resources for its Phase 3 program.
EDIT: 28 Jan 2012 – Company announced intention to delist to OTC on February 17. Timing roughly as predicted but anticipated a reverse split rather than delist.
TELK ($0.19) – Likely reverse split or delist to OTC early 2Q 2012.
CYCC ($0.49) – Reverse split 3Q 2012. Significant data could boost its bid price above $1, however. Not as clear cut as the other contenders above.
BIOD ($0.65) – Reverse split likely late 3Q/early 4Q 2012. They should be able to get another 180 day extension in May 2012 by transferring to NASDAQ Capital as long as they keep their bid price above $0.45 (approx) assuming it does not offer any shares between now and May 2012.
EDIT: March 14, 2012 – Misread timing of original NASDAQ delist notice so have pushed back timing of reverse split.
ICAD ($0.56)- Delist to OTC or reverse split 3Q 2012. The company has until March 7, 2012 to regain compliance. Likely to transfer to NASDAQ Capital, giving an extra 180 day extension.
SOMX ($0.50) – Possible reverse split 4Q 2012 or delist to OTC earlier. The company has until June 11, 2012 to regain compliance, then may get a further 180 day extension.
GALE ($0.45) – Reverse split possible 4Q 2012.
EDIT May 5 2012 – Pushed its bid price above $1 for ten consecutive days so no longer facing delisting issues, for the time being
AVII ($0.77)- Possible reverse split 4Q 2012.
EDIT Feb 24 2012 – Pushed its bid price above $1 for ten consecutive days so no longer facing delisting issues, for the time being.

About the author

Currently residing in New Zealand, Mr. A.Burden holds a Master of Commerce in International Business from the University of Sydney and used these skills together with his passion for investing to establish BioPharmCatalyst in June 2010 as a tool for investing decisions in the US pharmaceutical market. He spends much of his free time mountain biking, playing squash and hiking.
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