ANN ARBOR ? Defense and security products company Arotech Corp. announced Thursday that NASDAQ has decided to continue listings its stock on the over-the-counter exchange provided Arotech meets certain conditions before July 6.
Arotech provides defense and security products for the military, law enforcement and homeland security markets, including multimedia interactive simulators/trainers, lightweight armoring and advanced zinc-air and lithium batteries and chargers.
The NASDAQ conditions include:
On or before June 19, Arotech must file an amended Form 10-K that includes a completed assessment by management of the effectiveness of Arotech?s internal control over financial reporting;
On or before June 19, Arotech must obtain approval from its stockholders for implementation of a reverse stock split sufficient to cure its bid price deficiency;
On or before July 6, Arotech must demonstrate a closing bid price of at least $1 per share for a minimum of ten consecutive business days. On Thursday, the company?s stock was trading for about 35 cents a share.
While Arotech expects to meet these conditions, there can be no assurance that it will be successful in doing so, said Arotech CEO Robert Ehrlich.
?The decision of NASDAQ to allow us time to file an amended Form 10-K and to effect a reverse stock split underscores the critical importance of a positive vote on the reverse stock split proposal at our Annual Meeting on June 19,?? Ehrlich said. ?I urge our stockholders to send in their completed proxy cards with a vote in favor of the reverse split, and to do so as soon as possible.?
Earlier this week, Arotech reported a net loss of $4.2 million, or $0.05 per share for the quarter ended March 31, compared to a loss of $2.5 million or $0.03 per share for the first quarter of 2005. Revenues for the first quarter were $8.9 million, compared to $10.4 million for the same period in 2005.
