22 May NASDAQ puts Merge on notice again
Milwaukee, Wis. – Merge Technologies, Inc. has received a written notification from the NASDAQ Stock Market warning that the company’s failure to file financial reports for the quarter ending March 31, 2006 would serve as an additional basis for delisting its common stock from NASDAQ.
Representatives of Merge, which does business as Merge Healthcare, have appeared before the NASDAQ Listing Qualifications Panel to request that the panel grant Merge an extension until June 30, 2006 to regain compliance. The NASDAQ Listing Qualifications Panel has not yet informed Merge of its decision.
The latest written notification indicates the NASDAQ panel will consider the failure to file timely quarterly reports in its decision on Merge’s continued listing on The NASDAQ National Market. Earlier this year, Merge was notified by NASDAQ that it was not in compliance with 2005 financial reporting requirements, and that its common stock was therefore subject to delisting.
The company, which develops medical imaging and information management software, is in the process of restating financial reports and faces a shareholder lawsuit stemming from its $325 million stock purchase of Cedara Corp., a Canadian software company that develops products for the medical imaging OEM market.
Shareholders allege that Merge executives broke securities laws by issuing materially false and misleading statements that claimed the merger was successful.
In the wake of the shareholder lawsuits, the company’s board of directors accepted the resignation of company president and CEO Richard Linden.
• Merge president steps down in wake of shareholder suits