There is a reason for Dataram Corp. (NASDAQ: DRAM) shareholders to rejoice. The company has announced that it has regained compliance for continued listing on the NASDAQ Stock Market. That development removes one of the major uncertainties that have recently hanged around the stock.
It was the Listing Qualifications Department of the NASDAQ that recently notified Dataram that it has regained compliance for continued listing on the stock market. Following the notification, the management of Dataram sent out a press release saying that they are pleased by the development.
Dataram’s CEO, Dave Moylan, said that maintaining listing on the NASDAQ is important for the company, its customers and shareholders. Specifically, the CEO cited that listing on the NASDAQ provides shareholders of Dataram with the benefit of enhanced liquidity.
What was the problem?
The NASDAQ had early this year informed Dataram Corp. (NASDAQ: DRAM) that it was no longer in compliance for continued listing on the stock market after the minimum bid price for its stock fell below $1. That notification comes from the NASDAQ if a stock has closed below $1 for 30 consecutive business days. The affected company is typically allowed some time to regain compliance and failing to do so may lead to delisting.
On its part, Dataram took the window of opportunity to regain compliance by performing a reverse split of its stock. The company consolidated three shares of its common stock into one share of a higher value. After that, the stock began to trade higher and exceeded the $1 minimum closing bid price.
But NASDAQ didn’t lift the minimum bid price notice on the stock of Dataram until 10 business days elapsed. Therefore, the notice that Dataram was now out of the woods regarding its stock closing below the required minimum price came on July 26.
Acquisition of Gold Corp
With the issue of NASDAQ listing now out of the picture, investors will turn their attention Dataram Corp (NASDAQ: DRAM)’s pending acquisition of Gold Corp. the company shocked many investors when it announced that it had decided to diversify into natural resources sector with the takeover of Gold Corp in a deal that could cost it north of $160 million.