Omtool Announces Nasdaq Capital Market Listing Deficiency.Omtool to provide plan to achieve and sustain compliance with The Nasdaq Capital Market's listing requirements Listing requirements Requirements, including minimum shares outstanding, market value, and income, that are laid down by an exchange for any stock to be listed for trading. ANDOVER, Mass. -- Omtool, Ltd. (NASDAQ: OMTL), a leading provider of document handling solutions, today announced that it has received a letter, dated November 17, 2006, from the Listing Qualifications Department of the Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. stating that Omtool does not comply with Marketplace Rule 4310(c)(2)(B), which requires companies listed on The Nasdaq Capital Market Originally called the NASDAQ Small Cap Market, NASDAQ announced a name change to the NASDAQ Capital Market on September 27, 2005. [1] The NASDAQ Capital Market exists for securities of smaller, less-capitalized companies (small caps) that do not qualify for to have (i) a minimum of $2,500,000 in stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. ; (ii) a market value of listed securities Listed Security Securities that have been accepted for trading purposes by a recognized and regulated exchange. Notes: Listed securities have the advantage of higher liquidity within a regulated environment. of $35,000,000; or (iii) $500,000 of net income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the most recently completed fiscal year or two of the three most recently completed fiscal years. Nasdaq's letter to Omtool noted that, under the circumstances described above, Nasdaq is reviewing the Company's eligibility for continued listing on The Nasdaq Capital Market. To facilitate this review, Nasdaq requested that Omtool provide, on or before December 4, 2006, a plan to achieve and sustain compliance with all the listing requirements of The Nasdaq Capital Market, including the time frame for completion of the plan. Omtool is exploring various ways to preserve its listing on The Nasdaq Capital Market, including through its previously announced agreement to acquire BlueChip Technologies Ltd. and otherwise, and intends to submit its plan to Nasdaq on or before December 4, 2006. About Omtool, Ltd. Omtool, Ltd. is a leading provider of document and information handling solutions used to control essential document lifecycles. Whether it is paper-based, faxed-based or electronic information, Omtool's products are designed to capture that information and deliver it to the destination(s) where it is needed. Its enterprise-level products are used by organizations worldwide whose business processes frequently include paper-based documents and/or stringent compliance requirements Compliance requirements are a series of directives established by United States Federal government agencies that summarize hundreds of Federal laws and regulations applicable to Federal assistance (also known as Federal aid or Federal funds). that include secure handling, storage, integration and tracking of a variety of documents. Omtool's flagship product A primary product of a company, which is typically why the company was founded and/or what made it well known. For example, MS-DOS, Windows and the Microsoft Office suite have been flagship products of Microsoft. CorelDRAW is a flagship product of Corel Corporation. , AccuRoute, is a document capture, conversion and communication platform that makes it easy to capture valuable company information and distribute it to multiple systems simultaneously, all from users' desktops or any network enabled scanning device See scanner. . Based in Andover, Massachusetts with offices in the United Kingdom, Omtool can be contacted at 800-886-7845 or www.omtool.com. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , including, without limitation, statements regarding Omtool's plans to achieve and sustain compliance with The Nasdaq Capital Market's listing requirements; the anticipated combination with BlueChip Technologies and the benefits thereof; Omtool's objectives and expectations; future financial and operating performance; customer interest in Omtool's Genifax([TM]) and AccuRoute products; long-term sales strategy; distribution channels; and the future plans of Omtool's management. These forward-looking statements are neither promises nor guarantees, and are subject to risk and uncertainties that could cause actual results to differ materially from the expectations set forth in these forward-looking statements, including but not limited to, continued non-compliance with the listing requirements of The Nasdaq Capital Market; risks associated with the consummating and integrating the BlueChip Technologies acquisition; introduction of new product offerings, including the AccuRoute, Genidocs([TM]) and Genifax software products; the success of Omtool's channel sales strategies; business partner strategies and new sales and marketing efforts; Omtool's investments in vertical markets, including legal, financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. and healthcare; the continuation of market demand for fax-based software solutions; fluctuations in quarterly results of operations; Omtool's headquarters relocation; changes in the regulatory environment; dependence on continuing growth in the number of organizations implementing secure electronic document exchange; competition; product enhancements; product concentration; declines in Omtool's legacy fax business; seasonality; international sales; Omtool's ability to manage expansion; Omtool's ability to obtain desired financing; acquisitions and integration of complementary businesses; and those other risk factors described in Omtool's periodic reports and registration statements as filed with the Securities and Exchange Commission, including Omtool's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission on March 28, 2006. Reported results should not be considered an indication of future performance. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Omtool undertakes no responsibility to update any such forward-looking statements. |
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