February 19, 2005

What happens if SCO Group stock is de-listed on NASDAQ

Author: Melanie Hollands

The SCO Group has failed to file its annual Form 10-K (aka annual report) for the fiscal year ending Oct. 31, 2004, with the Securities and Exchange Commission.
Melanie Hollands

On Feb. 16, SCO received a notification from the NASDAQ that it was not in compliance with the exchange's listing requirements. The 10K was due on Jan. 31, 2005, as the SEC requires filing within 90 days of fiscal period-end (in SCOs case Oct. 31, 2004). SCO filed for a 15-day extension, which expired on Tuesday, Feb. 15.

The SEC now considers SCO Group to be a delinquent filer; as such the NASDAQ added an "E" to the end of its former SCOX ticker (like a scarlet letter) to signal that status to the market. SCO's stock started trading under the symbol SCOXE on Friday, Feb. 18.

Meanwhile, SCO has requested a hearing before the NASDAQ Listing Qualifications Panel to appeal the exchange's determination. SCOXE common stock will remain listed on the NASDAQ pending the outcome of the appeal. However, if SCO Group continues to fail to comply with the NASDAQs reporting requirements, its listing on the exchange could be in jeopardy, and it's possible that SCOXE could be de-listed from the exchange. At present, the deadline for SCO Group's filing its 10-K is Friday, Feb. 25.

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