Arlington-based Ace*Comm, a company that provides support systems for telecommunication services providers, is in danger of being delisted from the NASDAQ stock exchange.
The company said Thursday a letter from NASDAQ notified it of the possible delisting.
The exchange told the company it violated an exchange rule to have either $2.5 million in stockholder equity, $35 million in market security value or $500,000 in net income from the previous fiscal year.
Ace*Comm must present a plan to NASDAQ by June 7 on how it plans to meet this rule’s requirements.
If NASDAQ does not approve the plan, the firm would be removed from the exchange.
The company did not return calls for comment on Thursday. A delisting could prove devastating, as it would cause the value of the firm to drop significantly and force the company to trade on smaller penny exchanges, such as the Pink Sheets.
In an effort to avoid delisting, Ace*Comm announced it is seeking $4.2 million in debt refinancing to provide the company with capital in an attempt to penetrate the market.
The delisting threat comes in a month in which Ace*Comm announced job layoffs and named George Jimenez as its new president. The layoffs have yet to occur, and it is not clear how many of the firm’s 100 workers would lose their jobs.
