Nicholas Financial Inc. said it was notified by The Nasdaq Stock Market that as a result of the company’s failure to hold an annual shareholder meeting within the required timeframe, Nasdaq will begin proceedings to delist the company’s securities from The Nasdaq Stock Market. The company revealed the news in an April 3 SEC filing.
On Dec. 17, Nicholas entered an agreement to sell issued and outstanding common shares to an indirect wholly-owned unit of Prospect Capital Corp.
The Company said in the 8K document that it had delayed the holding of its annual meeting of shareholders due to the pending Prospect transaction.
That deal is expected to close June 12.
The company said it intends to appeal the delisting within the required appeal period under Nasdaq rules. Nicholas said the company’s common shares will continue to trade on The Nasdaq Global Select Market while the appeal is pending.
When shares of a company get delisted from an exchange, the current shareholders continue to hold the stock, but they can no longer trade it.
Nicholas and Prospect did not return requests for comment.