Cyanotech faces suspended trading over late filing
Cyanotech Corp., already facing a possible delisting from Nasdaq for a sub-$1 stock price, was notified yesterday that trading in its shares will be suspended on Sept. 1, barring appeal, because it is late filing its quarterly financial report with the Securities and Exchange Commission.
The Big Island producer of nutritional products from microalgae said earlier this week it was delaying the release of its fiscal 2007 first-quarter earnings for a second time because of a technical accounting review related to the company's "historical treatment of certain inventory-related costs."
Cyanotech, which received a staff determination from the Nasdaq Stock Market for noncompliance with filing requirements, said it will appeal the decision and request a Nasdaq panel hearing to review the decision. Until a decision is made by the panel, the stock will continue to trade on the Nasdaq SmallCap Market.
Cyanotech's stock closed yesterday at a near-four-year low of 49 cents.
The company, which has said it would trade on the Over the Counter Bulletin Board if its stock is delisted, was notified by Nasdaq on May 31 that it was being given a 180-day extension, or by Nov. 26, to boost its shares to $1 or higher for 10 consecutive days.
Cyanotech has been trading on the less-liquid Nasdaq SmallCap Market since September 2002 when it was delisted from the Nasdaq National Market for a sub-$1 stock price. Since then, the company was warned one previous time for its low price but was able to boost its stock above $1 to avoid delisting.