New York Stock Exchange could delist ZBB Energy
ZBB Energy says it has enough cash and other financing to continue operations through the second quarter of fiscal 2014.
ZBB Energy Corp.[6] could be delisted from the New York Stock Exchange[7] partly because exchange officials think the Menomonee Falls company’s financial position has deteriorated to the point that it might not be able to continue operations or meet its obligations, according to a filing Friday with the U.S. Securities & Exchange Commission.
ZBB projects it can fund operations through the second quarter of fiscal 2014 but will need more investment capital or other funding to continue operating after that, the company said Friday.
On Monday ZBB received a letter from the exchange informing the company that it’s not in compliance with three listing standards:
• “The Company," according to the SEC filing, "has sustained losses which are so substantial in relation to its overall operations or its existing financial resources, or its financial condition has become so impaired that it appears questionable, in the opinion of the exchange, as to whether the company will be able to continue operations and/or meet its obligations as they mature.”
• The company reported stockholders’ equity of less than $4 million as of June 30 and net losses in three of its four most recent fiscal years.
• The company reported stockholders’ equity of less than $6 million as of June 30 and net losses in its five most recent fiscal years.
ZBB (NYSE MKT: ZBB), a developer of advanced, large-scale energy storage and power electronic systems for renewable energy applications, said the letter has no immediate effect upon the listing of its common stock.
ZBB said it has until Nov. 14 to submit a plan detailing action the company has taken, or will take, to comply with the exchange requirements. It must comply with the financial condition requirement by Dec. 31 and the other two requirements regarding stockholders’ equity by April 14, 2015.
Jeff Engel is The Business Journal's reporter covering the manufacturing industry and technology.
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