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EnerDel parent in danger of losing NASDAQ listing

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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.

 

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  1. Cramer agrees...says don't buy it and sell it if you own it! Their "pay to play" cost is this issue. As long as they charge customers, they never will attain the critical mass needed to be a successful on company...Jim Cramer quote.

  2. My responses to some of the comments would include the following: 1. Our offer which included the forgiveness of debt (this is an immediate forgiveness and is not "spread over many years")represents debt that due to a reduction of interest rates in the economy arguably represents consideration together with the cash component of our offer that exceeds the $2.1 million apparently offered by another party. 2. The previous $2.1 million cash offer that was turned down by the CRC would have netted the CRC substantially less than $2.1 million. As a result even in hindsight the CRC was wise in turning down that offer. 3. With regard to "concerned Carmelite's" discussion of the previous financing Pedcor gave up $16.5 million in City debt in addition to the conveyance of the garage (appraised at $13 million)in exchange for the $22.5 million cash and debt obligations. The local media never discussed the $16.5 million in debt that we gave up which would show that we gave $29.5 million in value for the $23.5 million. 4.Pedcor would have been much happier if Brian was still operating his Deli and only made this offer as we believe that we can redevelop the building into something that will be better for the City and City Center where both Pedcor the citizens of Carmel have a large investment. Bruce Cordingley, President, Pedcor

  3. I've been looking for news on Corner Bakery, too, but there doesn't seem to be any info out there. I prefer them over Panera and Paradise so can't wait to see where they'll be!

  4. WGN actually is two channels: 1. WGN Chicago, seen only in Chicago (and parts of Canada) - this station is one of the flagship CW affiliates. 2. WGN America - a nationwide cable channel that doesn't carry any CW programming, and doesn't have local affiliates. (In addition, as WGN is owned by Tribune, just like WTTV, WTTK, and WXIN, I can't imagine they would do anything to help WISH.) In Indianapolis, CW programming is already seen on WTTV 4 and WTTK 29, and when CBS takes over those stations' main channels, the CW will move to a sub channel, such as 4.2 or 4.3 and 29.2 or 29.3. TBS is only a cable channel these days and does not affiliate with local stations. WISH could move the MyNetwork affiliation from WNDY 23 to WISH 8, but I am beginning to think they may prefer to put together their own lineup of syndicated programming instead. While much of it would be "reruns" from broadcast or cable, that's pretty much what the MyNetwork does these days anyway. So since WISH has the choice, they may want to customize their lineup by choosing programs that they feel will garner better ratings in this market.

  5. The Pedcor debt is from the CRC paying ~$23M for the Pedcor's parking garage at City Center that is apprased at $13M. Why did we pay over the top money for a private businesses parking? What did we get out of it? Pedcor got free parking for their apartment and business tenants. Pedcor now gets another building for free that taxpayers have ~$3M tied up in. This is NOT a win win for taxpayers. It is just a win for Pedcor who contributes heavily to the Friends of Jim Brainard. The campaign reports are on the Hamilton County website. http://www2.hamiltoncounty.in.gov/publicdocs/Campaign%20Finance%20Images/defaultfiles.asp?ARG1=Campaign Finance Images&ARG2=/Brainard, Jim

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