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Nov. 4, 2011 /PRNewswire-Asia/ -- Wowjoint Holdings Limited ("Wowjoint," or the "Company") (Nasdaq: BWOW),
China's innovative infrastructure solutions provider of customized heavy duty lifting and carrying machinery, today announced that the Company received two letters from the Listing Qualification Staff of the NASDAQ Stock Market LLC (the "Staff"), one on
October 31, 2011 indicating that the Company is not in compliance with the Minimum Market Value of Publicly Held Shares (MVPHS) of
$5,000,000, and one on
November 4, 2011 indicating that the Company is not in compliance with the
$1.00 Minimum Closing Bid Price Requirement.
The Listing Rules (the "Rules") require listed securities to maintain a MVPHS of
$5,000,000. MVPHS is calculated by multiplying the publicly held shares, which is the total outstanding shares less the shares held by officers, directors and beneficial owners of 10% or more of the outstanding shares, by the closing bid price. If a NASDAQ-listed company trades below the applicable MVPHS requirement for 30 consecutive business days, it will be notified of the deficiency. Also, the Rules require that if a company trades for 30 consecutive business days below the
$1.00 minimum closing bid price requirement, NASDAQ will send a deficiency notice to the company. Based upon the Staff's review of both of these items, the Company no longer meets these requirements. However, the Rules provide the Company with a compliance period of 180 calendar days in which to regain compliance with each of these requirements.
To regain compliance with the MVPHS requirement, the Company's MVPHS must close at
$5,000,000 or more for a minimum of ten consecutive business days during this compliance period.
To regain compliance with the Minimum Bid Price requirement, the Company must have a closing bid price of
$1.00 or more for 10 consecutive business days during this compliance period.
If compliance is not demonstrated for each of these requirements within the applicable 180 day compliance period, the Staff will notify the Company that its securities will be delisted from the NASDAQ Global Market. However, the Company may appeal the Staff's determination to delist its securities to a Hearing Panel. During any appeal process, shares of the Company's common stock would continue to trade on the NASDAQ Global Market. In the alternative the Company may be able to transfer to the NASDAQ Capital Market.