Mace delists from NASDAQ, gets new board member
As of today, Mace Security International's common stock will no longer be traded on the NASDAQ, and instead will be traded on OTCQB system.
This move is the culmination of events that started last spring with a March 22 letter NASDAQ sent Mace saying the bid price of the company's common stock had closed at less than $1 per share over the previous 30 consecutive trading days, which didn't comply with NASDAQ Listing Qualifications. Mace was then given 180 calendar days to regain compliance. To do that, they need to have a closing bid of $1 per share or higher for ten consecutive business days.
NASDAQ notified Mace of their non-compliance on Sept. 21. Mace decided against appealing the decision.
The only basis for an appeal of the NASDAQ determination would have been to effectuate a reverse stock split of the company's stock, said Mace CEO and president Dennis Raefield, in a prepared statement. The Mace Board of Directors believe a reverse stock split "is not in the best interest of our shareholders at this time," he said.“Our Board of Directors elected not to appeal the NASDAQ decision, as the Board believes the OTCQB will provide an excellent trading platform for our stock." Raefield said as OTCQB traded company, "we will continue to file periodic reports with the SEC and continue to provide our high standard of disclosure to our shareholders. We will also be maintaining our corporate governance procedures. The OTCQB will provide investors with a trading platform that will allow them to actively trade their stock.”
In other Mace news, the company announced on Monday that it’d named Michael E. Smith to its Board of Directors.
According to a press release, Smith is an independent consultant and the founder of Chesterbrook Growth Partners which provides companies in the security, RFID, auto-identification and electronic components industries with strategic assessment and implementation advice for revenue and profit enhancement. Before that, he spent 14 years with Checkpoint Systems. As senior vice president, he led worldwide marketing efforts and launched Checkpoint’s direct sales and operations activities in Europe. As executive vice president, he ran worldwide operations and also managed Checkpoint's Security System Group and Access Control Product Group. He became president and CEO of Checkpoint in 2001. Through his 14-year tenure, revenues grew from $35 million to more than $650 million through a combination of internal growth and key acquisitions.
In a prepared statement, Dennis Raefield said, “As Mace continues its focus on being a pure security industry operation, we are excited to have Michael join our board of directors. His previous security industry experience and broad management skills add additional security bench strength to our team. I have already benefited from great assistance and insight from Michael's participation in the boardroom. We are excited about Michael's continued contributions to Mace."