TranSwitch Corporation Receives Nasdaq Minimum Bid Price Non-Compliance Letter
TranSwitch Corporation (Nasdaq: TXCC), a leading provider of semiconductor solutions for the converging voice, data and video network, today announced that it received a letter on December 4, 2012, from the Nasdaq Capital Market indicating that the Company no longer meets the minimum bid price requirement for continued listing on the Nasdaq Capital Market as set forth in Nasdaq Listing Rule 5550(a)(2) (the “Rule”). The notice stated that the bid price of the Company's common stock has closed below the required minimum $1.00 per share for the previous 30 consecutive business days. The Nasdaq notice has no immediate effect on the listing of the Company's common stock.
In accordance with Nasdaq rules, the Company has 180 calendar days to regain compliance with the Rule. If at any time before June 3, 2013, the bid price of the Company's common stock closes at $1.00 per share or higher for a minimum of 10 consecutive business days, Nasdaq will notify the Company that it has regained compliance with the Rule.
In the event the Company does not regain compliance with the Rule prior to June 3, 2013, Nasdaq will notify the Company that its securities are subject to delisting. However, the Company may be eligible for additional time. To qualify, the Company will be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for the Nasdaq Capital Market, with the exception of the bid price requirement, and will need to provide written notice of its intention to cure the deficiency during the second compliance period. If such application to the Nasdaq Capital Market is approved, then the Company may be eligible for an additional grace period. However, if it appears to Nasdaq that the Company will not be able to cure the deficiency, or if the Company is otherwise not eligible, Nasdaq will provide notice that the Company's securities will be subject to delisting. The Company may, at that time, appeal the Nasdaq determination to a Nasdaq Hearing Panel. Such an appeal, if granted, would stay delisting until a Panel ruling.
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