Broadwind Energy, Inc. (NASDAQ: BWEN) announced today that the NASDAQ Listing Qualifications Panel (the "Panel"), by letter dated March 20, 2012, has granted the Company's request for a 180-day extension to comply with the $1.00 per share minimum bid price requirement for continued listing on the NASDAQ Capital Market.
The additional 180-day period will expire on September 17, 2012. The Panel's determination to grant the additional 180-day period was based on the Company meeting the continued listing requirement for market value of publicly held shares and all other applicable requirements for continued listing on The NASDAQ Capital Market, with the exception of the minimum closing bid price requirement, and the Company's written notice of its intention to cure the deficiency during the second compliance period by effecting a reverse stock split, if necessary. If at any time before September 17, 2012, the bid price of the Company's common stock closes at $1.00 per share or more for a minimum of ten consecutive trading days, the Company will regain compliance with the minimum bid price rule.
Peter C. Duprey, president and chief executive officer, stated, "Our primary action to regain minimum bid compliance is to achieve our objective for positive Adjusted EBITDA in 2012 by executing our strategy to grow revenue and further diversify our industrial and customer mix while improving our operating efficiency. Since retaining a NASDAQ listing is important to Broadwind and its shareholders, we are asking our shareholders at our 2011 annual meeting on May 4, 2012, as a contingency plan, to grant authorization to our Board of Directors to execute a reverse stock split, should such an action be considered advisable and in the best interests of the company. We view authorization to effect a reverse split as a reserve option, and remain focused on operational execution."
While the Company has and shall continue to seek compliance with the minimum bid price rule through positive operational execution, there can be no assurance that the Company will be able to demonstrate compliance by the deadline set forth above, or that the Panel will grant the Company another extension in the event compliance is not achieved on a timely basis.