JMAR warned by NASDAQ it may be delisted

Not so good news for San Diego, California-based JMAR Technologies (NASDAQ: JMAR), a maker of laser-based technology and X-ray processes for imaging and analysis: It has received a notice on 9 November 2006 from the Nasdaq Stock Market indicating that JAMAR was not in compliance with the minimum bid price requirement for continued listing set forth in NASDAQ Marketplace Rule 4310(c)(4) (the “Minimum Bid Price Rule”), and as a result the company’s common stock was subject to delisting from the NASDAQ Capital Market at the opening of business on 20 November 2006. The company could request a hearing by 16 November 2006 in accordance with the NASDAQ Marketplace Rules. Recall that the Minimum Bid Price Rule requires that the bid price of the company’s common stock remain above $1.00 for continued inclusion in the NASDAQ Capital Market.

JMAR was initially notified on 12 May 2006 that the bid price of its common stock had closed below the minimum bid price for thirty consecutive business days. In accordance with the NASDAQ Marketplace Rules, the company was granted 180 calendar days, or until 8 November 2006, to regain compliance with the Minimum Bid Price Rule. The company was unable to regain compliance with the rule before 8 November 2006 and is not eligible for an additional compliance period because it does not meet the NASDAQ Capital Market initial inclusion requirements.

If this were not enough, another rule kicks in: NASDAQ Marketplace Rule 4310(c)(2)(B) requires that the company maintain stockholders’ equity of $2.5 million (“Minimum Stockholders’ Equity Rule”) or market capitalization of $35 million. As of 30 September 2006, the company’s stockholders’ equity will be substantially less than $2.5 million and its market capitalization is only about $13 million.

JMAR said it would request an appeal hearing by 16 November 2006 with the NASDAQ Listing Qualifications Panel to review the delisting determination. The hearing date will be determined by NASDAQ and should occur within forty-five calendar days from the request for the hearing. A request for a hearing will stay the delisting of the company’s common stock pending the panel’s decision. If the panel decides against the company and if the company decides not to appeal the NASDAQ staff’s delisting determination, or if the panel denies the appeal, the company’s common stock will be delisted. If the company’s stock is delisted, then the common stock will likely trade on the OTC Bulletin Board or the Pink Sheets following the approval by the NASD of an application by one or more market makers to continue quoting in the company’s common stock.

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