DETROIT ? Catuity has appealed a de-listing ruling from the Nasdaq Small Cap Market after the company failed to maintain three independent directors on its board.
Catuity became non-compliant with Securities and Exchange Commission regulations on June 22 when Catuity’s Chairman, who was also a member of its Audit Committee, resigned from the Board, subsequent to the sudden death on June 9 of Alan Gilman, another member of the Audit Committee.
“Nasdaq Staff indicated that they have no latitude to grant an exception to Marketplace Rule 4350,” said Catuity CEO John Racine. “The Board has made significant progress in identifying and interviewing prospective candidates and expects to name a new, qualified independent director to the Board within weeks.”
The company, in the SEC filing, also said it would acquire Loyalty Magic Pty. Ltd. and complete a public offering to raise capital.
Catuity expects to file the prospectus with the Australian Securities Investment Commission this week. The company believes that completion of these steps will immediately bring the Company into compliance with NASDAQ?s shareholders’ equity requirement.
Catuity makes the point of sale more profitable for its clients by delivering products and services that reduce costs and generate new revenue.
