US soft drinks firm Jones Soda has received a deficiency letter from Nasdaq because its share price has fallen below the minimum level required for continued listing on the Nasdaq Capital Market.
The letter pointed out that the bid price for the company's common stock closed below the minimum $1.00 per share minimum for 30 consecutive business days to 14 September. This puts it in contravention of the Nasdaq Marketplace Rule 5550(a)(2).
In accordance with Nasdaq rules, the company has been given an initial period of 180 calendar days, until 15 March 2010, to regain compliance.
In order to return to compliance, the bid price would have to close at $1.00 per share or more for a minimum of ten consecutive business days. Under some circumstances, Nasdaq has discretion to require compliance for a longer period but this is generally no more than 20 consecutive days.
On 15 March, 2010, Jones Soda would be eligible for a further 180-day period to return to compliance.
Last month, Jones Soda reported a narrowing of its net losses for the second quarter but said it still had "much work" to do in order to achieve long-term profitability. For the second quarter to 30 June, net losses fell by 28% to US$2m from the previous year's Q2 net losses of $2.7m.
President and CEO Joth Ricci said the company was pleased with efficiency gains that had been made but warned that further cost cutting would be necessary in the near future.