Cybex International (Nasdaq:CYBI) said it intends to appeal a Nasdaq Stock Market request that the company delist its stock by Oct. 13, 2011.
The Medway, Mass.-based manufacturer revealed Oct. 7, that it received a letter on Oct. 4 informing it of Nasdaq’s determination that Cybex “has not timely regained compliance with the minimum stockholders’ equity requirement of $10 million for continued listing on the Nasdaq.”
Cybex officials said the company has the option to delay the Oct. 13 deadline by requesting a hearing before the Nasdaq Hearings Panel, which it did, and that hearing is set for Nov. 10, 2011.
“At the panel hearing, the company will present a plan to regain compliance with the listing rule,” Cybex officials said in a press release. “The panel has the discretion to grant Cybex a period of up to 180 calendar days from the date of the determination letter, or April 1, 2012, to regain compliance. There can be no assurance that the panel will grant the company’s request for continued listing on the Nasdaq.”
Cybex officials said the failure to comply with the $10 million requirement “is caused solely” by the money it has set aside on a pending $66 million lawsuit won by Natalie Barnhard, which the company is appealing and has been granted a stay in full payment until further ruling.
As previously reported, in a separate ruling, Nasdaq officials warned Cybex, June 16, 2011, of its noncompliance with the market’s minimum bid price requirement of $1 per share. Cybex has until Dec. 13, 2011 to regain compliance with that requirement. On Oct. 7, the stock closed the trading day at $0.56 per share.
--Compiled by David Clucas