The New York Stock Exchange warned AdvanSource Biomaterials Corp. (NYSE:ASB) that it faces de-listing from the market because it fell short of its equity and profitability requirements.
At the close of the AdvanSource’s fiscal quarter ending June 30, the company reported stockholders’ equity of $5.8 million, just shy of the NYSE’s $6 million threshold. In addition, the company had net losses and losses from continuing operations in its five most recent fiscal years.
The Wilmington, Mass.-based medical device polymer supplier was able to trim its second-quarter losses by 5.4 percent on an 11.8 percent boost to its bottom line. The company posted net losses of $642,000, or 3 cents per share, on sales of $503,000 during the three months ended June 30. That compares with net losses of $679,000, also 3 cents per share, on sales of $450,000 during the same period last year. Its shares were going for 21 cents apiece in mid-morning trading Aug. 24.
The exchange informed AdvanSource that it must "submit a plan by September 16, 2010 addressing how it intends to regain compliance by February 17, 2012." AdvanSource said it will attempt to maintain its NYSE listing.
It’s been a busy 24 hours for the company, which said it inked a five-year supply agreement with an un-named "multi-national medical device company" for hydrophilic polymer resins and solutions it designed specifically for the mystery company’s devices.
AdvanSource vice president of sales and marketing Khristine Carroll called the deal "a significant step in our vertical integration strategy."
The agreement will provide an annual usage fee for AdvanSource and "should be an additional catalyst in growing our product sales and improving our margins,” Carroll said.