Will Glori Energy Inc (NASDAQ:GLRI) Be Better Off Outside NASDAQ?


Glori Energy Inc (NASDAQ:GLRI) has kicked off the process of withdrawing the listing of its stock from the NASDAQ Stock Market. The company has only listed its stock on NASDAQ for two years. It got a place on the nation exchange through a reverse merger in 2014.

How will exiting NASDAQ impact Glori Energy Inc (NASDAQ:GLRI)? If the ask CEO Kevin Guilbeau, the impact will be positive. The impression that the board and management of GLRI are creating is that it would have been more expensive and constraining for GLRI to struggling to retain NASDAQ listing.

There are expenses and valuation requirements associated with maintaining listing on a national exchange such as NASDAQ. GLRI sees an opportunity to drop those expenses and enjoy a more relax regulatory environment by withdrawing from NASDAQ.

Furthermore, Mr. Guilbeau said that delisting from NASDAQ will not distract pursuing its business plan and creating value for shareholders. The management is executing on a plan known as Phoenix initiative.

Listing on OTC

After withdrawing from NASDAQ, Glori Energy Inc (NASDAQ:GLRI) plans list on OTC Market. The company also said that it will continue to make its periodic financial filing. GLRI stock will formally cease trading on the NASDAQ on Sept. 29.

Where did rain start beating Glori?

Glori Energy Inc (NASDAQ:GLRI) fell out of compliance for continued listing on NASDAQ for several reasons. One of them is that the company’s shareholder equity had declined below the accepted minimum of $2.5 million. The company’s minimum net income also sank below the required minimum. On top of that, the minimum bid price GLRI stock had declined below the $1 minimum. These shortages made it difficult for GLRI to attempt to fight to retain its listing on NASDAQ, instead choosing to delist and seek listing elsewhere.

GLRI’s delisting from NASDAQ comes only a few months after its CEO Stuart Page resigned. Mr. Guilbeau, who had been the chairman of the board, was tapped to replace Mr. Page.

Coming back to the national exchange

Though Glori Energy Inc (NASDAQ:GLRI) has voluntary decided to withdraw its listing from NASDAQ, nothing will prevent it from coming back later when it feels that it qualifies for continued listing on the market.


Leave A Reply