Spokane-based Sterling Financial Corp. announced Wednesday that its stock will be traded on the Nasdaq Capital Market beginning today.
The stock also faces delisting from the Nasdaq Global Market.
In a required filing to the Securities and Exchange Commission, Daniel Byrne, Sterling executive vice president and principal financial officer , said the transfer from the Global Market to the Capital Market was being ordered because of Sterling’s low stock price.
The company received a letter in December concerning its non-compliance with a Nasdaq rule that a stock’s minimum bid price close above $1 per share for more than 30 consecutive trading days.
Sterling shares have lately traded below that level.
The company now faces a deadline of Dec. 6 by which time it must meet the minimum price rule.
A stock that is delisted would no longer be traded on the major market, and might subsequently find a home on the less-stringent over-the-counter market.
A Nasdaq spokesman explained Wednesday that there are three levels of trading on the exchange. The third, Nasdaq Capital Market, typically reflects a company attempting capital formation.
With 178 branches in Washington, Idaho, Oregon, California and Montana, Sterling Savings Bank counts assets of over $11 billion. The bank operates several outlets in the South Sound, including those in Tacoma, Olympia and Fircrest. The parent company also operates Golf Savings Bank.
Sterling stock closed Wednesday at 80 cents, down 2 cents.
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