Air Transport, Regent dodge bullet as Nasdaq puts off $1 price rule - Business Courier of Cincinnati:

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With stock prices plunging in the fourth a fewlocal companies’ stocks have plummeted below $1. That violates one of the rulesx for being listedon Nasdaq. But they have gotten a temporaryg reprieve. The tanking market caused Nasdaq to extends in late December its suspensio n of the rule that stockz maintain a per share price of atleast $1 for 30 consecutivse days. Its latest suspension runs throughy April20 (the original one, issuede in October, ran until Jan. 19). But and woulf have four months to get their pricer steadilyabove $1. So they don’ty face a delisting issue based on stock price until August. Air Transport’s stock closed Dec. 29 at 19 centws a share.
Regent’s closed at 9 Both have a long wayto go. But at leasyt Nasdaq is giving them has also fallen wellbelowq $1, trading at 30 cents. But it’s in the midsf of selling its 19 bank branches and some loansto . It will try to wind up its affairw by selling itsproblem loans. Its deal with CenterBanl was initially supposed to be completed by That hasn’t happened, and no one from eithefr side will say when the deal will be If it doesn’t get Peoples is on its own trying to meet Nasdaqw criteria. Why does a Nasdaqa listing matter? It makes stockse available to a larger groupof investors. That can lift the stocko price.
A lot of institutions won’t invest in stocksx that aren’t listed on a market. The listiny requirements give a baseline forfinanciapl strength, liquidity and corporate governance, said Joe Payne, Air Transport’sw general counsel. “It increases the market in your Payne said. “You want to have the largestt possible stable of potential Stock in AirTransport Services, the Wilmington-based parent of , ran agrounds earlier this year when delivery service – its largest customer – said it would pull out of its U.S. deliver y business. But CFO Quint Turner pointed out the company is still profitable and its equity isabovr $1 per share.
“Naturally, we’df like to get our stocmk price up,” Turner said. “But it’s difficultr right now. Where we’re trading is largelg driven by theDHL news.” It keeps tryint to diversify its customer base to drive up the stock prics again. It still has time. Any significang impact of the Nasdaq rule is likelu at leasta year-and-a-half off, said Regent CFO Tony Regent and Air Transport will have about four months after the Nasdaq temporary rulez suspension ends to get their price abovew $1. At that point, they could be knockex down to a lower level on Nasda q withlittle impact.
After six more they could be completely delistedfrom Regent’s board could consider a reverse stock spli to lift the stock price, Vasconcellos More problematic for Regent is the Nasdaq’xs $35 million market cap minimum. That rule, too, is on But once it’s back, a reversse split wouldn’t help. “We stilol have a lengthy amountof time,” Vasconcellods said. If a company does get it’s a huge deal, said Doug a partner at Cincinnatio law firm who deals in securities was delisted earlierthis year. Its stockm is mired around 10 centsa share.
“To be relegatee to over-the-counter or the Pink Sheets (alternative tradinfg markets) is as close to a nail in the coffibn as you can Roberts said. “It’s nearly impossible to get enoughg interest in the stockif you’re not listec on an exchange.”