Amerityre, NASDAQ resolve stock situation
NASDAQ has notified Amerityre Corp. that the company inadvertently failed to comply with NASDAQ Marketplace Rule 4350. However, the problem has been resolved.
"The NASDAQ letter noted the company's failure to obtain shareholder approval prior to selling shares of common stock to insiders at a discount to market price," say Amerityre officials.
"The Listing Department had verbally notified the Company of this shareholder approval violation on May 8, 2007."
On April 2, 2007, the Company completed the private placement of 261,574 units at a price of $14 per unit.
Seven insiders, including officers and directors of the Company, purchased some of the units in this transaction, according to Amerityre officials.
"The transaction resulted in the issuance of shares of common stock to the insiders at a discounted price."
In submissions dated May 18 and 30, the firm provided NASDAQ with amended subscription agreements for the insiders, each of which reflected a price equal to the market value of the units.