YRC Worldwide Inc. reported it was notified by The Nasdaq Stock Market on March 3, 2010 that it is not in compliance with Nasdaq Marketplace Rule 5450(a)(1) because shares of its common stock closed at a per share bid price of less than $1.00 for 30 consecutive business days. In accordance with Nasdaq Marketplace Rule 5810(c)(3)(A), the company has 180 calendar days, or until August 30, 2010, to regain compliance. This notification has no effect on the listing of the company's common stock at this time.
To regain compliance with the Nasdaq Marketplace Rules, the closing bid price of YRC Worldwide common stock must close at or above $1.00 per share for ten consecutive business days.
As previously announced, the company's stockholders at the February 17 special stockholders meeting approved an increase in the number of authorized common shares which allowed substantially all of the company's outstanding convertible Class A preferred stock to automatically convert to common stock. With the conversion of the convertible Class A preferred stock into common stock, the number of outstanding common shares listed and tradable on the NASDAQ exchange increased from approximately 97 million to approximately 1 billion shares.
Based upon the March 4, 2010 closing price on the Nasdaq exchange of $0.44 per common share, the company's market capitalization was approximately $450 million. Stockholders have authorized the company's board of directors, at their discretion, to effect a reverse stock split within a range from 5:1 to 25:1 bringing the approximately 1 billion outstanding shares to a post-reverse-stock-split range of approximately 40 million to approximately 200 million. Under the terms of the $70 million private placement transaction with respect to the company's new 6% convertible senior notes, the company agreed to not implement the reverse stock split prior to April 24, 2010. The company expects to effect the reverse stock split during the second quarter of the year.