A small British Columbia wireless network equipment manufacturer says it will fight a decision by the Toronto Stock Exchange to delist its shares at the end of today for failing to meet the exchange’s listing requirements.
Tranzeo, which makes point to point and point to multipoint radios for service providers and enterprises, has been in trouble with the TSX since July 25 when it first announced there was a problem. At that point the exchange gave the company four months to meet its requirements. Monday’s announcement signals that goal wasn’t met.
Generally, TSX-listed technology company has to have a minimum of $10 million in its treasury, adequate funds to cover development and capital expenditures, a minimum market value of issued securities of at least $50 million and the minimum value of its securities has to be $10 million. Technology companies also have to have adequate funds to cover all planned development and capital expenditures, and general and administrative expenses for a period of at least one year.
Shortly after the TSX announced it’s listing review in July, Tranzeo
Last month chief financial officer Douglas Howes resigned as chief financial officer, and was replaced on an interim basis by board chair Patrick Smith. Howes remained as a consultant until a permanent CFO is hired.
According to its third quarter results, issued last month, the company had revenue of $2.7 million, compared to $2.1 million a year ago, with gross profit of about $800,000.
Financially, the company hit its peak in 2008, when it had $19.4 million in revenue. In 2010 the company pulled in $11.1 million in revenue, compared to $11.6 million in 2009. Gross profit was $2.8 million for 2010 and $3.2 million for 2009.
