MDI announced it has notified the Nasdaq Stock Market ("Nasdaq") of its intent to voluntarily delist its common stock from the Nasdaq Capital Market. The company currently anticipates that it will file with the Securities and Exchange Commission and Nasdaq a Form 25 relating to the delisting of its common stock on or about March 2, 2009, with the delisting of its common stock becoming effective ten days thereafter. Accordingly, the company anticipates that the last day of trading of its common stock on the Nasdaq Capital Markets will be on or about March 12, 2009. The company intends to discuss with the market makers for its common stock having its common stock quoted on the OTC Bulletin Board, but no arrangements have yet been made in that regard.
The decision to voluntarily delist its common stock is a cost savings step that will eliminate expenses associated with Nasdaq listing fees. Given the light trading volume of its common stock, the company believes that investors will be more than adequately served by other alternatives such as the OTC Bulletin Board or the Pink Sheets. MDI also expects that, going forward, the delisting of its common stock will provide it with greater corporate flexibility and will allow it to deploy more resources to its core business operations.
All companies listed on Nasdaq must meet the standards that Nasdaq adopts. One such standard is that the stock trade at a price that is US$1 per share or higher on a consistent basis. These standards are described in Nasdaq Marketplace Rule 4310 (the "Rule").
On Nov. 7, 2007, MDI received a letter from Nasdaq stating that it was not in compliance with the minimum $1 per share requirement for continued inclusion under Marketplace Rule 4310(c)(4). The company is currently in compliance with all Nasdaq listing requirements, except for the minimum bid price requirement.