Spy’s Parent Company Receives Nasdaq Deficiency Letter

mike lewis

• April 28 2009
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Orange 21 Inc. (NASDAQ:ORNG), Spy Optic’s parent company, announced it is applying to transfer its Nasdaq listing from the Nasdaq Global Market to the Nasdaq Capital Market after failing to meet the Global Market’s minimum equity requirements.  As reported in its Form 10-K for the year ended December 31, 2008, Orange 21 no longer satisfies the $10 million stockholders’ equity requirement for the Global Market (Listing Rules 5450(b)(1)(A)).

The company states that this will result in a small cost savings and doesn’t believe that stockholder’s liquidity will be significantly impacted. Orange 21’s stock is currently valued at $.75 per share.

According to the release:

“We received a Nasdaq Staff Deficiency Letter from the Nasdaq Stock Market regarding our failure to meet the minimum stockholders’ equity requirement on April 21, 2009. After evaluating the Nasdaq Staff Deficiency Letter, we determined that at this time it is more advantageous to pursue a transfer to the Nasdaq Capital Market than attempt to maintain listing on the Nasdaq Global Market because we meet all of the currently effective continued listing requirements for the Nasdaq Capital Market and the proceedings involved in attempting to maintain our Nasdaq Global Market listing are costly, time consuming and a distraction to management”