Ubics keeps Nasdaq spot, nixes vote on stock split
Ubics Inc., a Canonsburg-based information technology consulting company, will continue to have a place on The Nasdaq Smallcap Market after meeting the concerns raised late last year by the Nasdaq Listing Qualifications Panel.
The Nasdaq board in October 2002 had threatened to de-list Ubics' common stock due to concerns over its low bid price, lack of a third quarter company earnings report, and Ubics' $4 million purchase of a jet for an affiliated company.
However, Ubics said Tuesday, the panel granted the company an exception from the continued listing criteria in a decision stemming from a Jan. 10 hearing.
As a condition of the exception, Ubics must demonstrate a market value of at least $1 million for its publicly held shares by March 24 and hold that position for at least 10 consecutive trading days.
In addition, Ubics, which closed at 27 cents yesterday, must bring the bid price of its stock up to $1 and have that value hold for 10 consecutive days on or before April 7. The stock has not been at or above $1 since Aug. 23, 2001.
A special stockholder's meeting had been scheduled for Feb. 17 to vote on a one-for-five reverse stock split that Ubics' board of directors had proposed to raise the bid price. That meeting has been canceled, and the company yesterday did not detail what other measures it would use to increase the bid price. Officials could not be reached for further comment.
Ubics did say its stocks will continue to be listed on the OTC Bulletin Board, if it is not able to meet the Nasdaq conditions.
Nasdaq's board of directors has proposed modifications to the bid price rules, which, if approved, would give Ubics a 180-day grace period through Aug. 11.
As of yesterday, Ubics' common stock trading symbol changed from "UBIXE" to "UBIXC," with the "C" to be removed when it complies with the Nasdaq conditions.