May 102013

By Nick Worth
According to a Form 8-K filed with the Securities and Exchange Commission (SEC) on April 26, Prospect Global Resources (PGR) has fallen short of the requirements for continued listing on the Nasdaq Capital Market.
In the SEC filing, Prospect Global, listed as PGRX on the Nasdaq exchange, wrote “On April 23, 2013, we received written notification from the Nasdaq Stock Market that for the last 30 consecutive business days, the bid price of our common stock had closed below the minimum $1 per share requirement for continued inclusion on the Nasdaq Capital Market based on Listing Rule 5550(a)(1).”
The SEC filing goes on to report that PGR’s common stock remains listed on the Nasdaq Capital Market under the symbol PGRX and that the company has 180 calendar days, or until September 20, to regain compliance. It then states, “If at any time before then, our common stock has a closing bid price of $1 or more for a minimum of 10 consecutive business days, Nasdaq staff will notify us that we have regained compliance.”
The SEC filing, which was signed by PGR President and CEO Damon Barber continued, “We intend to actively monitor the bid price for our common stock for the next 180 days and will consider available options to regain compliance with the NASDAQ minimum bid price requirement.”
The NASDAQ listing for PGRX common stock showed the share price of the stock has gone from a high of $7.50 per share to a low of $0.22 per share over the past year. As of Monday morning, the shares were listed at $.30.
In the same SEC filing and in connection with the notification of the low stock price, PGR reported they had also received notification from Nasdaq on April 25, that they “are no longer in compliance with Nasdaq Listing Rule 5550(b)(2), because the market value of our listed securities has fallen below the $35 million minimum requirement for continued listing on the Nasdaq Capital Market for a period of at least 30 consecutive business days.”
Just as with the stock price goal of $1 per share, PGR has 180 days in which to get the market value of their listed securities back up above the $35 million mark. If they can do this for at least 10 consecutive business days, they will reach compliance and PGRX common stock will continue to be listed on NASDAQ. If the goal cannot be met, the stock will be delisted.
If PGR does receive a notice of delisting, NASDAQ rules permit the company to appeal the delisting determination to a Nasdaq Hearings Panel.
“We are currently considering available options to resolve the deficiency and regain compliance with the NASDAQ minimum requirement for market value of listed securities,” Barber wrote to the SEC.
The Tribune-News was unable to get in touch with Barber, or with PGR vice president Greg Dangler for comment.