Finance & Investing | Capital Markets
ZaZa Out of Compliance with NASDAQ After Bid Price Falls
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ZaZa Energy Corporation reported that on March 18, 2014, the Company received a letter from NASDAQ Stock Market LLC indicating that it is not in compliance with the minimum bid price requirement for continued listing set forth in Listing Rule 5550(a)(2) which requires listed securities to maintain a minimum bid price of $1.00 per share.
The Company has options available to ensure continued listing on the NASDAQ, and management and the Board of Directors are evaluating the most optimal path forward. As of yesterday, the ZAZA share price was $0.78, and the Company will actively monitor the bid price for its common stock.
According to the letter from NASDAQ, ZaZa has been given a grace period of six months (180 calendar days), beginning March 18, 2014 to regain compliance with the minimum bid price requirement. ZaZa can regain compliance if, at any time before this period ends, the bid price of its common stock closes at or above $1.00 per share for a minimum of ten consecutive business days. If ZaZa cannot demonstrate compliance by the end of this grace period, the Company may then be eligible for an additional six month (180 calendar days) period to regain compliance if it meets the NASDAQ Capital Market´s initial listing standards with the exception of the minimum bid price requirement.
During the initial 180 calendar day period (and potential, additional 180 day calendar period) ZaZa´s common stock will continue to trade on the NASDAQ Capital Market under the symbol "ZAZA". Therefore, the NASDAQ Staff Deficiency Letter has no immediate impact on the listing of the common stock of ZAZA.