WASHINGTON -- The National Association of Securities Dealers here began listing Grand Union's common stock on the Nasdaq SmallCap Market last week.
ltogether because of difficulties the chain was having meeting certain criteria. A hearing, conducted by the Nasdaq Listing Qualifications Panel, determined the company was eligible for the SmallCap listing, which has lower requirements than the National index.
An initial listing on the SmallCap market requires $4 million in net tangible assets, or $50 million market capitalization or $750,000 net income in the latest fiscal year or two of the last three fiscal years. The requirements also include a minimum bid price of $4.
According to a Grand Union statement, the panel granted a waiver to the initial $4 bid price requirement and the $4 million net tangible assets requirement. However, the company will be required to satisfy all other maintenance criteria with the exception of the capital and surplus requirements that will be waived.
According to Grand Union, "Nasdaq noted that the company has a new management team, including a new chairman and chief executive officer, and a new chief financial and administrative officer. During the past 16 months, the company has implemented cost-cutting measures, which are predicted to reduce expense by a minimum of $8 million annually. Furthermore, the company has initiated new marketing and promotional plans intended to increase sales volume and improve profitability."
The text of the ruling is not a public document, and was not available to SN. "This is the next best thing to being on the national listing," said a Nasdaq spokesman. "And it's better than being delisted."