Shares of Root9B Holdings Inc RTNB crashed 43 percent on Wednesday after the stock resumed trading following a Nasdaq halt on Tuesday. In a new 8-K filing, Root9B disclosed that it has received a Staff Determination from the Nasdaq that it has been determined no longer be an operating business and is currently a “public shell.”
Root9B is a cybersecurity company that announced just last week that it had been acquired by an affiliate of Tracker Capital Management. The stock was initially halted on Friday in order for the Nasdaq to gain more information about the situation.
When Trouble Began
Root9B’s troubles started back on Sept. 6 when the Nasdaq informed the company that it must submit a plan to regain listing compliance no later than Sept. 15. On Sept. 21, the Nasdaq sent a Staff Determination Letter stating that it had not received a plan from the company and informing shareholders that the company’s common stock would be suspended from trading as of Oct. 2.
The Nasdaq also denied the company’s request for a continued listing on its exchange. Root9B was found to be in violation of a number of Nasdaq listing requirements, including vacancies on its board of directors, failure to maintain a minimum market value of listed securities of at least $35 million and failure to file a Form 10-Q quarterly earnings report.
Root9B chose to appeal the Nasdaq’s decision in an effort to keep its stock trading past Oct. 2. The Nasdaq Hearings Panel will now consider the company’s appeal, but Root9B has warned shareholders that there is no guarantee the appeal will be successful.
“There can be no assurance the Company will be successful in its’ appeal or regain compliance with Nasdaq’s rules or that Nasdaq will allow the Company’s stock to resume trading,” the 8-K filing read.
Root9B’s remaining investors don’t seem optimistic about a positive outcome, taking the opportunity to dump remaining shares on Wednesday. The stock is now down…
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