Stock Market to Boot Red Light Camera Vendor
The Nasdaq will de-list red light and speed camera vendor Nestor, Inc unless it can raise its stock price within thirty days.
Nestor logoNasdaq officials on Monday warned Nestor, Inc that it would be dropped from the stock exchange on November 15 unless the company's stock price rises above $2.46. The Rhode Island based red light camera vendor is now scrambling to ink as many deals as possible to avoid losing its position on the exchange.
"Bid price has proven to be a good indicator of a company's long term viability," Nasdaq Listing and Hearing Review Council co-Chairman Glenn Oxner said in a statement describing the de-listing process. "Nasdaq was the first market to recognize this, when it originally implemented this requirement."
Nestor has an uphill battle in the next thirty days as savvy investors have shied away from placing their bets on photo enforcement companies. Several courts have overturned municipal camera ordinances and nine state legislatures have outlawed the devices. The Minnesota Court of Appeals struck down red light cameras in September and the West Virginia state legislature enacted a law in March prohibiting their use.
Losses for Nestor grew 68 percent, leaving the company $9,277,000 in the red last year, according to documents filed with the Securities and Exchange Commission. Last year, four members of the Nestor's board of directors stepped down as the company's total debt soared to $59 million.