temp delisting due to compliance issues

Hi all,

what a stock!

I stumbled across this yesterday when the new direction announcement appeared on my news screen.

I bought in on a short term trade (after scanning a 4 cent valuation)hoping to make a couple of quick points and exit.

It looks like I'm a holder for a little while yet.

Some very good posts here which a lot of it i don't understand.

But it seems there is a reverse takeover happening which failed to tick a few boxes so NASDAQ is waving the naughty stick until said problems have been fixed.

The link in another thread to the US Yahoo boards has proved useful and I thought I would post some posts here so that there was a bit more info going around than the doom and gloom thread above ;)




'Ok, so CBTE is currently "not in compliance" with NASDAQ regs (nice work, guys). But IF (capitalized, because its a BIG IF) the GL Bio merger goes through, then won't they return to compliance? It was estimated that the deal would be done in 60 to 90 days (IIRC), so we're not talking a lot of time.

If (again with that word!) CBTE is out of compliance and appeals, two things are likely to happen. One, the appeal takes long enough that the GLB deal occurs and the compliance issue becomes moot. Or two, CBTE is relegated to pink sheet status (CBTE.PK) while the GLB deal proceeds. My question is, when the GLB deal goes through and they are back in compliance, do they automatically get to return to Nasdaq or do they have to reapply, etc., etc. etc?

I'm concerned and not concerned at the same time! Not concerned because with GLB deal, I'm pretty sure CBTE regains compliance, and even if they have to go through the reapplying procedures, they will eventually rejoin Nasdaq. Concerned however if they lose their NASDAQ status, what's GLB's incentive to merge with them? That is the main plum that GLB is looking for, and this latest move endangers it.

I can't believe GLB wasn't aware of the potential of CBTE to lose NASDAQ compliance, because the merger was announced after the initial warning letter. So I tend to think this is just a small bump in the road, not a major obstacle. But with these goofs, you never know.

Thoughts?'

"It is not the share price causing the listing compliance problem (which could be fixed by a reverse split), it is the fact that they have less than $2.5 million in shareholder's equity. The way I read it, CBI were hoping that the Biosignal stock swap thing was going to fix that but it seems NASDAQ disagreed. Not only that, they screwed up the Biosignal deal by not putting it to shareholders or notifying NASDAQ in time, leading to 2 more compliance failures."

'Other than the embarrassment factor (as measured by the "how stupid can management be" index), there doesn't seem to be a huge amount of concern about this latest gaff. While losing 15% of value is not good, there isn't a land rush to the door to get out of the stock. Volume is moderately high, but not excessive. I'd think if this was really bad, we'd have tanked on 1 million or more shares. Maybe this afternoon after it has set in?

Remember, this stock was trading at around $.30 in April and May before announcing the GLB thing. So even if we flat line out between $.50 and .55, we're still in positive ground compared to that earlier time frame. An announcement that the GLB deal is complete should put us back in compliance and restore the share price to a more reasonable level.

Sorry to be such a cheerleader based on my own interpretations of the data. Reasonable counter arguments are always welcome.'



So what's the deal with this stock?

it's now a movie producing company that has a whole lot ofshares in a delisted NAsdaq stock?