Dallas February 10, 2003 Supply chain solution provider i2 Technologies today nixed its planned move to the NASDAQ Small Cap Market following recent proposals to change NASDAQ's continued listing requirements.
As a result of i2's decision, NASDAQ issued a delisting notification to the solution provider, which i2 said it plans to appeal.
i2 announced at the end of January that it would move to the Small Cap Market as of February 7. The company's stock ticked above $100 in early 2000 but has spent most of the past six months trading between $0.50 and $1.50 a share, hit by the tech spending downturn along with various other solution providers.
The NASDAQ board of directors recently approved an amendment to its continued listing requirements that, if approved by the Securities and Exchange Commission, could allow i2 to satisfy the market's listing requirements if its stock price rises to above the $1 level within a newly proposed extended grace period.
Based on the potential listing requirement changes, i2 decided to use the NASDAQ delisting appeals process to demonstrate its ability to comply with and maintain the new listing standards, if approved by the SEC.
For that reason, i2 elected to withdrawal its planned phase-down to the NASDAQ Small Cap Market, and NASDAQ has furnished the company with a notice of intent to delist for noncompliance with NASDAQ's current minimum shareholders equity requirement for its national market.
The company plans to submit a request for a hearing to appeal the delisting notification within seven days. Hearings are generally scheduled 30 to 45 days from the time of request. The company's stock will continue to trade on the NASDAQ national market while the appeal is pending.
In the event that NASDAQ does not accept i2's position regarding its ability to meet and maintain the National Market continued listing standards, i2 said it intends to seek permission to move to the NASDAQ Small Cap Market at that time.
i2 recently reported preliminary results for its fourth quarter, pending the results of a re-audit of its 2000 and 2001financial statements. Including a $23 million restructuring charge, the company reported a net loss of $12.4 million for the fourth quarter, on revenues of $120 million.