ALEXANDRIA, Va.-Paging carrier Metrocall Inc. may have to move from Nasdaq’s National Market System to its SmallCap Market System because the company’s stock has been trading below the minimum bid price of $5.
The company appealed Nasdaq’s decision to remove it from the National Market System, and will plead its case with the Nasdaq Listing Qualifications Panel, scheduled to meet Feb. 9.
Metrocall “may seek to transfer its listing to the Nasdaq SmallCap Market System” if its appeal is denied, the company said in a release.
Metrocall’s stock was trading at 53 cents per share late last week.
While Metrocall struggled to maintain its Nasdaq footing, fellow paging carrier WebLink Wireless Inc. signed an amendment to its credit facility to allow it to borrow up to $80 million, and an additional $20 million with bank approval.
The company, which is moving away from paging and toward wireless data, said the financing would fund it through this year.
However, the $80 million is subject to “meeting new financial covenants more focused toward wireless data,” according to a release from the company. WebLink Wireless also warned there is no assurance it will obtain the equity financing necessary to satisfy its cash requirements.
“With our fourth quarter wireless data net adds coming in very strong as predicted, we expect the environment for equity raising for us to be better in the first quarter of next year (2001),” said John Beletic, the company’s chairman and chief executive officer. “Assuming adequate funding, we project our wireless data business will achieve EBITDA (earnings before interest, tax, depreciation and amortization) breakeven in the third quarter of 2001, just six quarters after first availability of full two-way devices.”
WebLink Wireless also announced the Securities and Exchange Commission declared effective the company’s shelf registration of 8.5 million shares.
The company’s stock was trading at $2.31 per share late last week.
Metrocall and WebLink Wireless aren’t the only paging carriers on shaky ground. Stocks for the nation’s largest messaging providers have been trading near or below $1, and TSR Wireless L.L.C., the nation’s largest privately held paging carrier, filed for Chapter 7 bankruptcy last month.
