Orange 21 Inc., which manages the SPY and SPY Optic brands, is applying to transfer its Nasdaq listing from the Nasdaq Global Market to the Nasdaq Capital Market. Orange 21 no longer meets the continued listing standards for the Nasdaq Global Market because, as reported in its Form 10-K for the year ended December 31, 2008, it no longer satisfies the $10 million stockholders equity requirement set forth in the Nasdaq Listing Rules 5450(b)(1)(A).
The comapny reported that is received a Nasdaq Staff Deficiency Letter from the Nasdaq Stock Market regarding its failure to meet the minimum stockholders equity requirement on April 21, 2009. After evaluating the Nasdaq Staff Deficiency Letter, Orange 21 determined that it was more advantageous to pursue a transfer to the Nasdaq Capital Market than attempt to maintain listing on the Nasdaq Global Market because they meet all of the currently effective continued listing requirements for the Nasdaq Capital Market and the proceedings involved in attempting to maintain the Nasdaq Global Market listing are “costly, time consuming and a distraction to management.”
The company siad listing on the Nasdaq Capital Market will result in a minor cost savings and they “do not believe that stockholders liquidity will be adversely impacted by a transfer to the Nasdaq Capital Market.”
