Cyanotech resigned
to possibility
of stock delisting
Cyanotech Corp. has resigned itself to the likelihood its stock will be delisted by the Nasdaq SmallCap Market and moved to the Over-the-Counter Bulletin Board.
Chief Financial Officer Jeff H. Sakamoto said yesterday the company has ruled out a reverse stock split and will focus instead on its operations and results.
"We understand the implications of delisting, and the only legitimate way of addressing it is through our results," Sakamoto said.
Cyanotech, which was delisted from the Nasdaq National Market on Sept. 23, 2002, needed to boost its stock to $1 by the close of trading yesterday and keep it at that level for 10 consecutive trading days to remain listed on the Nasdaq Small Market.
However, Cyanotech's shares closed down a penny yesterday to 49 cents. The stock hasn't closed at $1 since May 3, 2002.
"I have to at least discuss the notification with Nasdaq," said Sakamoto, who didn't know whether the company would appeal the delisting. "At that time, I'll hear what, if any, our options are. But, generally speaking, I expect our company to begin trading on the Over The Counter."
Earlier this month, Cyanotech said its fiscal 2004 first-quarter loss narrowed to $141,000 from a loss of $785,000 a year ago as revenues climbed 19 percent to $2.4 million.
"It still remains a short-term goal and a long-term goal to achieve profitability," Sakamoto said. "All of our efforts are going toward that. It's just an overall company effort to have the right amount of sales and the right amount of costs."
Sakamoto said a reverse split that would boost Cyanotech's stock over $1 has been ruled out even though the company resorted to such a move -- a 1-for-5 split -- in 1990.
"The idea of a reverse split has been brought up by shareholders and brokers, but my position remains firm," Sakamoto said. "In the long term, I don't see it as a value to the shareholder."
