Electronic Clearing House Inc. Tuesday announced, as required by applicable Nasdaq regulation, that it received a Nasdaq Staff Determination on April 10, 2001, indicating that the company fails to comply with the minimum bid price requirement for continued listing on the Nasdaq SmallCap Market, as set forth in Market Place Rule 4310 (c)(4), and that its securities are, therefore, subject to delisting.
The company has requested a hearing before a Nasdaq Listing Qualifications Panel to review the Nasdaq Staff Determination which stays any delisting action. The hearing is expected to occur within the next 45 days.
The company stock’s closing bid price maintained a price of $1.00 or more for 10 consecutive trading days between the period March 23, 2001, to April 5, 2001, which the company believes satisfied Nasdaq Market Place Rule 4310 (c)(4) for continued listing. The company’s stock bid price closed slightly below the $1.00 level for three days following the April 5 date and the staff of Nasdaq subsequently advised the company of its intent to initiate a delisting action. The company disagrees with the position taken by the Nasdaq staff and has appealed the staff determination to the Hearing Panel but there can be no assurance the panel will grant the company’s request for continued listing. “We feel the company complied with the 10-day minimum bid price requirement and do not feel the staff’s subsequent notice is appropriate,” stated Joel M. Barry, chairman and chief executive officer of ECHO, “but, ignoring this point, we feel confident that ECHO will resolve the minimum bid price issue as well and will remain listed on the Nasdaq SmallCap Market.” In case there are questions, shareholders are encouraged to call the company at 800/262-3246, ext. 3033.
Electronic Clearing House, with headquarters in Agoura Hills, provides debit and credit card processing, check guarantee, check verification, check conversion, check re-presentment, check collection and inventory tracking to more than 58,000 retail merchants and U-Haul dealers across the nation.Details