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  Listing Council Decision 2003-17
Identification Number 663
Rule 4310(c)(2)(B): $2,500,000 shareholders’ equity requirement, or its alternatives, for continued listing on the SmallCap Market.
 
Issue: At the time of the Panel decision, the company did not meet the minimum shareholders’ equity requirement or its alternatives, and its plan to raise additional equity was not sufficiently definitive. The company requested that the Panel include its contract and tax assets, which were not fully reflected on the company’s balance sheet under generally accepted accounting principles, in the calculation of shareholders’ equity. In the alternative, the company was considering a plan to effect a quasi-reorganization, which would allow a fresh start restructuring of its shareholders’ equity.
 
Determination: The company was properly delisted for failure to comply with the shareholders’ equity requirement. The Panel’s unwillingness to consider the inclusion of assets not captured on the company’s balance sheet was appropriate. Further, the company did not provide documentation to evidence its ability to restructure its shareholders’ equity in the near term.
Publication Date*: 7/31/2012 Mailto Link Identification Number: 663
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