Arcadia in danger of stock exchange delisting

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Arcadia Resources Inc. has been notified by NYSE Amex Equities Exchange that its stock price is too low to be trading on the exchange.

The Indianapolis-based health care company said on Friday that the exchange advised it to undertake a reverse stock split to avoid delisting and gave the company until Oct. 4 to complete the split.

“The company continues to monitor the trading price of its common stock and is considering its options to comply with [the standards],” Arcadia said in a press release.

Shares of Arcadia opened Monday morning priced at 15 cents each. The stock has closed at an average price of less than 20 cents over a consecutive 30-day trading period, which triggered the warning.

The stock hasn’t traded at 20 cents or above since Feb. 9. The stock reached a 52-week high of 83 cents per share last April 21.

A delsiting would relegate Arcadia shares to penny-stock status on the over-the-counter bulletin board or the pink sheets. Once that happens, shares are harder to buy and sell.

Arcadia offers pharmacy services, in addition to providing home health care staffing and selling medical equipment by catalog. Its flagship pharmacy product is DailyMed, which packages dosages of prescription medicines into individual packets labeled with the time of day they are to be taken.

For its most recent fiscal quarter, which ended Dec. 31, Arcadia lost $2.3 million, or 1 cent per share, on revenue of $26.2 million. That compares to a loss of $3.2 million, or 2 cents per share, on revenue of $25.7 million for the same quarter in 2009.

In May 2010, the company announced that it planned to add 930 jobs at its northeast-side headquarters by 2013.

Arcadia agreed in 2007 to move from Southfield, Mich., to Indianapolis and create 400 jobs over two years in exchange for about $6 million in economic development incentives.

Arcadia is the second Indianapolis-based company within the past six months to be threatened with delisting.

On Nov. 1, NASDAQ notified Emmis Communications Corp. that it no longer was in compliance with an exchange rule that requires members to carry a minimum stock price of $1. Company shares had closed below $1 per share for 30 consecutive business days, triggering the notice.

But in February, shares closed above the necessary threshold of $1 each for 10 consecutive business days, likely enabling Emmis to avoid delisting.

Its shares are currently trading at $1.04 each.


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