Cyanotech gains more time to boost stock price to $1
Cyanotech Corp., which produces human and animal nutritional supplements from microalgae, has received a 180-day reprieve to boost its stock price or face delisting from the Nasdaq SmallCap Market.
The notice, dated yesterday, follows a similar warning that the Big Island company received in December. In the earlier notice, Cyanotech was given 180 days, or until May 30, to get the bid price of its stock to the $1 threshold or higher for 10 consecutive trading days. The company was told at the time it could receive a six-month extension if other listing criteria were met. Yesterday it got that extension, giving it until Nov. 27 to reach the $1 level.
"We're very concerned about the delisting off of the exchange and feel it certainly could affect shareholder value," said Gerald Cysewski, chairman, president and chief executive. The over the-counter market where Cyanotech would have to trade does not have as much volume, he said.
Cyanotech's stock has been trading on Nasdaq SmallCap Market since September 2002, when it was delisted from the Nasdaq National Market. In 2003, it faced delisting from the Nasdaq SmallCap Market as well but was able to boost its price to $1 or higher for 10 straight days.
Last month, the company reported fiscal fourth-quarter net income of $194,000, a reversal from a $74,000 net loss from the year-earlier quarter. Revenue during the period was up 27 percent to $3.3 million from $2.6 million a year ago.