Nova Biosource Fuels (NBF) Receives Warning From NYSE Regarding Compliance

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08:29:35 am on March 3, 2009

Bad news for Nova Biosource Fuels… the company received a notice from the New York Stock exchange yesterday, advising that it is not in compliance with Section 1003(a)(iv) of the NYSE Alternext US LLC Company Guide. Basically, the company has had so many losses that the Exchange is not sure whether it will be able to meet its obligations in the future. In order to remain on the NYSE, Nova must submit a plan for bringing itself back into compliance by March 30, 2009.

The Exchange is also concerned with the company’s low selling price (it recently closed at .06 per share). According to a press release posted at Econoblogger, due to the low selling price:

The Exchange notified the Company that it deems it appropriate under the circumstances for the Company to effect a reverse stock split to address its low selling price. If a reverse stock split is not completed in a reasonable amount of time, the Exchange may consider suspending dealings in, or removing from the list, the Company’s common stock. There can be no assurance that the Company will be able to effectuate a reverse stock split within the time frame deemed satisfactory by the Exchange or, if effectuated, if a reverse stock split will result in an increase in the selling price of the Company’s common stock in an amount sufficient to satisfy the requirements of Section 1005(f)(v) of the Company Guide.

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