DETROIT ? Software developer Catuity regained its NASDAQ Listing after it increased stockholder equity to more than $8 million, well above the exchange?s $2.5 million minimum, in part through a $2 million private placement.
Catuity shares rose $1, or 7.3 percent, to $14.62 in afternoon trading on the Nasdaq, before closing Thursday at $13.28, down $1.23 on the day. The stock, which traded at a low of $3.30 a year ago, tripled in value in late June to a 52-week high of $22.58 after the company said it would provide its loyalty and gift card software to CertifiChecks’ more than 70,000 merchants. Chairman and majority shareholder Duncan Mount then promptly sold most of his shares and quit the board.
Earlier this month Catuity said it raised $5.29 million in capital and closed its acquisition of Australian firm Loyalty Magic Pty Ltd., putting it back into compliance with Nasdaq’s listing standards. The stock will continue to trade under the ticker symbol CTTYC until its quarterly filing in November, and then will revert to CTTY.
The company also announced Wednesday that it raised more than $2 million through the private placement of 270,000 shares with five institutional investors, bringing the number of total outstanding shares to just under 2.1 million.
?While there is a potential for investors to be confused, we want the market to
know that the CTTYC ticker does not impact the value of the company or imply
that we are not in compliance with NASDAQ?s requirements for continued
listing,?? said Jack Lowry, Chief Financial Officer of Catuity. ?We fully expect that
our Form 10-Q will fulfill the last requirement that NASDAQ has placed on the
company.?
Catuity makes the point of sale more profitable for its clients by delivering
products and services that reduce costs and generate new revenue. Our retailer
clients have more than three million consumers who participate in Catuity powered loyalty programs.
