In a filing with the Securities and Exchange Commission, Leapnet's management said it requested a hearing Thursday after it received a letter from Nasdaq saying its stock has failed to meet the $1 minimum price requirement for the market.
Companies that fail to maintain Nasdaq's requirements are dropped from the electronic markets and trade on the "pink sheets," lists of over-the-counter stocks, but it often hinders their ability to secure financing. Companies can request a hearing to defend their listing and can reapply for re-listing if their situation changes.
Shares in the online marketing and communications company have been trading under $1 since late 2000 and closed at 41 cents Thursday.
Leapnet has presented to its shareholders a proposal for a "reverse split" of its stock to maintain the price above $1 per share and preserve its listing. In a proxy sent to shareholders last month, the company proposes trading 29,205,126 shares of common stock outstanding for new stock on a five-for-one basis. Shareholders will vote on the proposal at the annual meeting scheduled June 5 at Leap's headquarters. -- Mercedes Cardona
Copyright May 2001, Crain Communications Inc.