Giga-tronics (GIGA) was steady at 88 cents a share in after-hours trading Friday night after the electronic components manufacturer said The NASDAQ Stock Market has issued a warning letter that company is at risk of having its stock delisted because its shareholders’ equity has fallen below Nasdaq’s $2.5 million minimum.
According to the company most recent 10-Q quarterly report, Giga-tronics’ shareholder equity dropped to less than $2.13 million during the three months ended Dec. 24, 2016. Under Nasdaq rules, the company now has 45 calendar days to submit a plan to regain compliance. If the proposal is accepted, Giga-tronics then has up up to 180 calendar days from Feb. 8 to implement those plans.
Giga-tronic tonight said it expects to submit its plan before the initial March 23 deadline.