Aug. 6 at 11:15 PM
$CMRC Sitting at
$2.30, the moronically titled 'COMMERCE HOLDINGS' is only a 56% drop away from triggering a NASDAQ bid-price violation. Given that the stock just dropped 32% in a single trading session, another disappointing quarter or wider micro-cap selloff puts them squarely in
$1.00 penny-stock territory...
...If a stock’s closing bid price falls below
$1.00 for 30 consecutive business days, NASDAQ issues an official Notice of Delisting Def..
...equity traders refuse to bid up the stock because of the
$150M+ in convertible notes due in 2028. At
$2.30, conversion is a complete non-starter (conversion strike is
$16.00). Any enterprise value created by the business goes to pay off debt holders first, leaving common shareholders at the bottom of the capital stack...
If
$CMRC continues to slide toward
$1.00, ignoring the
$RZLV offer, management's only legal lifeline to prevent delisting would be a Reverse Stock Split (e.g., 1-for-10) to artificially boost the share price back above
$10.
