Verticalnet Inc. says it has received a letter from Nasdaq saying the Malvern company is subject to delisting for failing to meet certain capital and net-income requirements.
Nasdaq wrote May 23 that Verticalnet needed to maintain minimum stockholder equity of $2.5 million, a market value of $35 million for listed securities, or $500,000 in net income from continuing operations for the most recently completed fiscal year or two of the three most recently completed fiscal years.
The company listed shareholder equity of $1.27 million on its March 31 quarterly earnings statement. The value of Verticalnet's listed securities is $3.97 million. The company, which licenses supply-management software, lost $2.5 million on revenue of $3.4 million in the period that ended March 31.
On May 15, its directors agreed to lend the company $600,000 to provide additional capital to the business and increase the commitment of insiders to Verticalnet's ongoing success.
Previously, Nasdaq threatened to delist Verticalnet for failing to maintain a minimum stock price of $1. Verticalnet shares traded at $1.89 a year ago, but have gone as low as 25 cents.
Verticalnet said in a statement Tuesday that it had proposed plans to comply with Nasdaq's requirements. It is waiting for a final ruling.
Shares closed unchanged yesterday at 31 cents.
Contact staff writer Miriam Hill at 215-854-5520 or email@example.com.