Latest GTAT bad news: Nasdaq delists stock
Move comes after huge drop in stock price since bankruptcy filing
GT Advanced Technologies stock was delisted by the Nasdaq exchange on Thursday, and – despite stated intentions to the contrary – the company will not appeal the action.
The delisting means that GTAT shares will be traded on the Pink Sheets, and the company will no longer be subject to listing conditions and required disclosures about its financial condition.
The news is just one more bitter pill for investors, who are still reeling after the Merrimack-based company’s stunning Oct. 6 filing for Chapter 11 bankruptcy reorganization after a $578 million deal with Apple went bad.
As a result of the filing, GTAT shares fell from $11.05 to a Nasdaq closing price of 44 cents.
The stock price continued to fall on the Pink Sheets (under the trading symbol GTATQ) to 32 cents a share by late afternoon.
The delisting also means that a quarterly financial report, expected in early November, will probably never be filed, further frustrating both investors and creditors who have been kept in the dark about the company, thanks to late or secret filings and hearings and a confidentiality agreement with Apple.
GTAT received notice of the delisting action the day it filed Chapter 11, though it only disclosed the news in a Securities and Exchange Commission filing at the end of trading on Oct. 10. At the time the Nasdaq said that trading could be halted Oct. 15, unless the delisting was appealed.
The company initially said it would appeal the Nasdaq move, and since trading continued on Wednesday, most observers thought that the company did file an appeal.
However, on Thursday, GTAT investors learned through a company filing that it “has determined not to pursue an appeal of the decision.”
When asked why, company spokesperson Jeff Nestel-Patt, said, “Can’t comment at this time.”