Battery maker Ener1 could lose its listing on the NASDAQ stock exchange if it continues trading below $1 per share.
The New York parent of EnerDel, which has almost 400 employees in the Indianapolis area, told investors Friday that it had received written notice of its failure to comply with NASDAQ's listing requirements.
The bid price of Ener1's stock had closed below the minimum $1 per share for 30 consecutive business days prior to Sept. 6. The stock (HEV) closed Friday at 36 cents per share.
Ener1 shares will have to rise to or above the $1 minimum for at least 10 consecutive business days between now and March 5 to stay in compliance.
Ener1's stock-price woes began in May, after the company wrote off $73 million related to its interest in Think, the electric car company. In August, the company delayed filing its second-quarter earnings report and later said it would restate previously announced earnings. An auditor said the company's cash-flow problems could put it out of business.
On Monday, Ener1 said it had restructured $58.5 million in debt. In addition, principal shareholder BzinFin S.A., the company backed by Russian businessman Boris Zingarevich, has extended the maturity date on a $15 million line of credit from November 2011 to July 2013.
"We're pleased with the confidence placed in us by our investors, since these agreements give us greater flexibility to achieve our business goals," Chairman and CEO Charles Gassenheimer said in a written statement.
Should Ener1 fail to meet NASDAQ’s 10-day demand, its stock would be relegated 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.