Company plans to appeal NASDAQ's decision to delist securities
On
To address the Nasdaq staff's concerns, the Company structured the warrant agreement with LC to restrict its voting power by requiring the shares of common stock issued upon conversion of the warrants to be voted in the same proportion as all other votes cast for all matters put before shareholders. The warrant agreement did not, however, limit the ability of LC to acquire beneficial ownership of the shares of common stock subject to the warrant. As a result, because LC has the ability to exercise the warrants and beneficially own approximately 29% of the Company's common stock, the Nasdaq staff has taken the position upon review that the transaction resulted in a change of control and, therefore, required shareholder approval under the Rule.
In addition, the Nasdaq staff also notified the Company on
The Nasdaq staff is using both of these matters as a basis for delisting the Company's securities from The Nasdaq Stock Market.
The Company plans to appeal the Nasdaq staff's determination to the Nasdaq Listing Qualifications Panel (the "Panel"), pursuant to the procedures set forth in the Nasdaq Marketplace Rule 4800 Series. This hearing request will stay the suspension of the Company's securities and the filing of the Form 25-NSE pending the Panel's decision.
Particle Drilling Technologies, Inc., headquartered in
Certain statements in this press release that are not historical but are forward-looking are subject to known and unknown risks and uncertainties, which may cause PDTI's actual results in future periods to be materially different from any future performance that may be suggested in this press release. Such risks and uncertainties may include, but are not limited to, PDTI's ability to raise capital, if necessary, and its ability to obtain financing on acceptable terms, if at all, a worldwide downturn in the energy services sector, working capital constraints and other risks described in PDTI's filings with the SEC. Further, PDTI is a development stage company that operates in an industry sector where securities values are highly volatile and may be influenced by economic and other factors beyond PDTI's control such as announcements by competitors and service providers.
Contacts: Jason D. Davis VP & Interim CFO Particle Drilling Technologies, Inc. 713-223-3031 Jack Lascar / Sheila Stuewe DRG&E / 713-529-6600
SOURCE Particle Drilling Technologies, Inc.