NUR Receives NASDAQ Delisting Notification; NUR Will Appeal
Press release from the issuing company
LOD, Israel--Dec. 23, 2004-- NUR Macroprinters, announced today that it had received a notice from Nasdaq Listing Qualifications (the "Staff") indicating that NUR's securities will be delisted from the Nasdaq SmallCap Market at the opening of business on December 31, 2004 (the "Delisting Notice") due to failure to comply with the minimum $2.5 million stockholders' equity requirement for continued listing set forth in Marketplace Rule 4320(e)(2)(B) (the "Rule"). NUR plans to request a hearing, pursuant to the Nasdaq Marketplace Rules, in order to appeal the Staff's determination. Requesting the hearing will stay the delisting of NUR's ordinary shares until the hearing panel has rendered a decision. If NUR's appeal is not successful, NUR's ordinary shares will cease to be quoted on the Nasdaq SmallCap Market and NUR will seek to have its ordinary shares made eligible for trading on the OTC Bulletin Board.
The receipt of the Delisting Notice follows communications between NUR and the Staff regarding NUR's failure to comply with the Rule's minimum stockholders' equity requirement. The Rule requires that an issuer maintain (i) stockholders' equity of $2.5 million; or (ii) market value of listed securities of $35 million; or (iii) net income from continuing operations of $500,000 in the most recently completed fiscal year or two or the last three most recently completed fiscal years.
On November 30 and December 14, 2004, NUR submitted its plans to regain compliance with the Rule's stockholders' equity requirement (collectively, the "Plan"). In the Plan, NUR stated that it anticipates net income from continuing operations of between $500,000 and $800,000 for the fourth quarter ending December 31, 2004. NUR also informed the Staff that, after taking into account certain non-equity expenses, it anticipates stockholders' equity will be above $2.5 million at December 31, 2004.
The Staff noted in the Delisting Notice that NUR's Plan did not include definitive documentation to substantiate its statement regarding profitability in the fourth quarter of 2004 other then its publicly released projections. The Staff also noted NUR's history of losses and NUR's previous non-compliance with the Rule. In this regard, the Staff noted that NUR had previously been notified of its non-compliance with the Rule by letter dated March 24, 2004 (NUR subsequently regained compliance and the matter was closed).
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