Struggling thin client hardware and software provider Neoware Systems Inc said Wednesday that it has received notification from Nasdaq that, based upon the company’s Form 10-Q for the period ending September 30, it no longer meets the minimum net tangible asset requirement for continued listing on the exchange. Thus the company’s shares will be de-listed effective November 30, Nasdaq said. The shares slipped 31.25% Wednesday to close at $1.37 and haven’t traded above $4 in the past year, during which analysts at most major banks abandoned coverage of the company.
The King of Prussia, Pennsylvania-based company will appeal Nasdaq’s decision, however, and asserts that, should it lose the appeal, it will likely be able to list its shares on the Nasdaq Small Cap market. Making matters worse for Neoware, the company’s pending acquisition of MTX Inc is now in jeopardy, as the merger agreement requires that the Neoware shares issued in the transaction be approved for listing on the Nasdaq. Neoware said it was unsure whether its efforts to remain listed will be successful or, if not, whether MTX will waive that closing condition.
