NASD to Stop Trading Eagle Computer Stock
Struggling Eagle Computer Inc. said that effective Friday its common stock will no longer be traded on the NASD automated quotation system, because fiscal year-end losses eroded its capital to an unacceptable level.
Shares of the Garden Grove microcomputer manufacturer will continue to be traded on the over-the-counter market, officials said Wednesday.
Company executives met with National Association of Securities Dealers representatives on Tuesday to request an exemption from the capital and surplus requirement. But on Wednesday, the request was denied.
Eagle said it is in the “process of pursuing additional financing tied to its newly released product, the Eagle Concorde,” model of microcomputer. In September, Eagle shareholders approved a plan to issue 10 million new shares of common stock and 1 million shares of preferred stock. Previously there was no class of preferred stock. Currently, Eagle has 21.1 million shares of common stock outstanding.
In trading Wednesday, Eagle common stock closed at 25 cents bid, unchanged for the day.
Eagle lost $10.1 million in the fiscal year ended July 30, compared with a loss of $26.4 million the prior year. Annual sales fell to $14 million from $48.4 million a year earlier.