Officials from Cybex International, Medway, MA, will appear before a NASDAQ Stock Market panel on Nov. 10 to present a plan to regain compliance with NASDAQ’s listing rule, Cybex announced today.
A release from Cybex says that the company, which is traded on NASDAQ, received a letter from the stock market on Oct. 4 noting that Cybex had not regained compliance with NASDAQ’s listing rule within 180 days from NASDAQ’s April 2011 notice that Cybex was noncompliant with the rule. The rule requires that to be listed, a company’s minimum stockholders’ equity must be $10 million. NASDAQ had stated that Cybex would be delisted as of Oct. 13 if the company did not request a hearing before the NASDAQ Hearing Panel. Cybex then requested a hearing, which was granted, delaying the possibility of delisting until the panel makes a final decision.
The panel can grant Cybex a period of up to 180 more calendar days from the date of the determination letter, or April 1, 2012, to regain compliance with the listing rule.
The Cybex release blames the failure to comply with the listing rule on an accounting charge relating to the Barnhard v. Cybex International Inc. product liability case, in which Cybex was held 75 percent liable for a $66 million judgment related to an injury involving a piece of its equipment. Cybex CEO John Aglialoro has previously said that the Barnhard verdict was wrongly decided. The company has appealed the judgment. If the appeal is successful, Cybex says it will be able to regain full compliance with the listing rule.
However, Cybex still has one more battle to go to continue its NASDAQ listing. On June 16, Cybex received another letter from NASDAQ stating that the company had not complied with NASDAQ’s requirement of a minimum bid price of $1 per share. Cybex has until Dec. 13 to regain compliance in this area.