Triad Guaranty Inc. Initiates Process To Voluntarily Delist Its Common Stock From The NASDAQ Stock Market And Announces Receipt Of NASDAQ Notice Of Noncompliance With Listing Rule Relating To Minimum Bid Price
WINSTON-SALEM, N.C., Dec. 7 /PRNewswire-FirstCall/ -- Triad Guaranty Inc. (Nasdaq: TGIC) (the "Company") today announced that on December 2, 2009, it received a notice from The NASDAQ Stock Market ("NASDAQ") stating that the Company was no longer in compliance with NASDAQ Listing Rule 5450(a)(1), which requires the Company's common stock to maintain a minimum bid price of $1.00 per share. NASDAQ will provide the Company with a grace period of 180 calendar days, or until June 1, 2010, to regain compliance with Listing Rule 5450(a)(1). The minimum bid price must be equal to or greater than $1.00 for at least 10 consecutive business days during the 180 day grace period in order for the Company to regain compliance with Listing Rule 5450(a)(1).
As previously announced on November 16, 2009, the Company is also not in compliance with NASDAQ Listing Rule 5450(b)(3)(C), which requires the Company to maintain a minimum market value of $15 million of its total outstanding shares of common stock (excluding shares held directly or indirectly by officers, directors or any beneficial owner of more than 10% of the Company's total outstanding shares) (the "Minimum Market Value"). NASDAQ has provided the Company with a grace period of 90 calendar days, or until February 9, 2010, to regain compliance with Listing Rule 5450(b)(3)(C). The Minimum Market Value must be equal to or greater than $15 million for at least 10 consecutive business days during the 90 day grace period in order for the Company to regain compliance with Listing Rule 5450(b)(3)(C).
Due in part to the Company's belief that it will be unable to regain compliance with at least Listing Rule 5450(b)(3)(C) prior to the expiration of the grace period, today the Company notified NASDAQ of its intent to begin the process for delisting its common stock from NASDAQ. The Company's decision to voluntarily delist also was based on the Company's (i) inability to transfer its listing to another NASDAQ tier; and (ii) desire to avoid the annual listing fee assessed by NASDAQ (typically on or about January 1 of each year) on companies that have securities listed on NASDAQ. The Company intends to file a Form 25 with the Securities and Exchange Commission (the "SEC") notifying the SEC of its decision to delist its common stock from NASDAQ. Due to SEC and NASDAQ notice requirements regarding the delisting process, the earliest the Company may file the required Form 25 with the SEC is December 17, 2009.
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