RICHMOND, Va., March 3 /PRNewswire-FirstCall/ -- Xenith Bankshares, Inc. (Nasdaq: XBKS) announced today that, on March 3, 2010, the company received a letter from The NASDAQ Stock Market LLC (NASDAQ) informing it that a NASDAQ Hearings Panel (Panel) has determined to grant Xenith Bankshares' request to remain listed on The NASDAQ Capital Market. The Panel's determination is subject to the condition that on or before June 21, 2010, Xenith Bankshares must satisfy all initial listing requirements for listing on The NASDAQ Capital Market, and have its application for initial listing approved by the Listing Qualifications Staff. If Xenith Bankshares does not satisfy these conditions by that date, the company's common stock will be delisted from The NASDAQ Capital Market. As noted below, Xenith Bankshares believes that it currently satisfies all initial listing requirements, other than the market value of publicly held shares (MVPHS) requirement applicable for a company seeking initial listing on The NASDAQ Capital Market.
As Xenith Bankshares previously announced, on December 23, 2009, it received a letter from NASDAQ stating that the December 22, 2009 merger of Xenith Corporation, a privately held company, with and into First Bankshares, Inc. (now known as Xenith Bankshares, Inc.) constituted a business combination that resulted in a "change of control" pursuant to NASDAQ Listing Rule 5110(a). Accordingly, the post-merger entity was required to satisfy all of NASDAQ's initial listing criteria and complete the initial listing process. The letter went on to state that the initial listing application was not approved because Xenith Bankshares did not meet the MVPHS requirement applicable for a company seeking initial listing on The NASDAQ Capital Market pursuant to NASDAQ Listing Rule 5505(b). At a hearing before the Panel on January 28, 2010, Xenith Bankshares appealed NASDAQ's determination and requested additional time to satisfy the MVPHS requirement.
NASDAQ requires that the market value of the company's publicly held shares (excluding shares held by directors, executive officers and 10% shareholders) be at least $15 million. As of the close of business on December 22, 2009, the completion date of the merger, the closing bid price for shares of First Bankshares' common stock was $4.01, which resulted in a market value of publicly held shares of $9,306,163. Since the hearing, shares of Xenith Bankshares' common stock have traded between $5.50 and $6.00 per share. The closing bid price for shares of Xenith Bankshares' common stock must be at least $6.47 in order for the company to satisfy the listing requirement's $15 million threshold.There can be no assurance that Xenith Bankshares will satisfy all initial listing requirements for listing on The NASDAQ Capital Market, including the MVPHS requirement, by June 21, 2010. If Xenith Bankshares does not satisfy all initial listing requirements for listing on The NASDAQ Capital Market, the company's common stock will be delisted from The NASDAQ Capital Market. If Xenith Bankshares' common stock is delisted, the company expects that its common stock will become eligible for quotation on the OTC Bulletin Board and/or the Pink OTC Markets (known as the "Pink Sheets") following the approval by the Financial Industry Regulatory Authority (FINRA) of an application by one or more market makers to continue quoting the company's common stock.