VeriChip, a provider of radio frequency identification (RFID) systems for healthcare and patient-related needs, has received a notice from the Nasdaq Stock Market, indicating that its stockholders’ equity at Sept. 30, was less than the $10 million required for continued listing on the Nasdaq Global Market.
The notice, which was dated Nov. 17, is a standard communication when a company’s stockholders’ equity is less than the $10 million minimum requirement. The Delray Beach, Fla.-based VeriChip said the notice has no immediate effect on the listing of its common stock.
In its letter, Nasdaq requested that VeriChip to provide its plan to achieve and sustain compliance with the continued listing requirements of the Nasdaq Global Market, including the minimum stockholders’ equity requirement, before Dec. 2.
If Nasdaq determines that the company has not presented a plan to achieve compliance in the short term and sustain compliance in the long term, it will provide VeriChip with a written notification that its securities will be delisted from the Nasdaq Global Market. If it receives a notification, VeriChip may apply to move to the Nasdaq Capital Market or appeal Nasdaq’s delisting determination to a Nasdaq listing qualifications panel. The company said it intends to submit a plan to Nasdaq before Dec. 2 to maintain its Nasdaq listing.