I didn't know about the $2.5 million requirement for stockholder's equity to remain listed, but here it is. This really doesn't change the odds on TranSwitch becoming a viable and/or successful company in the future, but it certainly doesn't look good. We will see what Mr. Market says today.
The registrant is presently evaluating various courses of action to regain compliance and intends to submit a plan to Nasdaq to regain compliance with the Nasdaq Listing Rules. Will investors get to see the plan once submitted?
I doubt we will get to look at the actual submission, but we may get hints from Dr. Ali. In the notice they did say there were other criteria they could satisfy to stay listed. I think market cap was one and operating income the other. While we did close down almost 5% today, volume was light. In fact the total dollar volume traded using the closing price amounted to 153 shares of Google. BFD!
The notice doesn't appear to be having much affect on the stock price. I guess investors in this stock have decided to ride it out and hope for the best and yes, I realize that "hope" is not an investing strategy.
As for reed1v's suggestion that the company could have loaned the money to Mr. Lynch to buy stock and prop up the stock price, I suppose that is possible, but I doubt Mr. Lynch would have much trouble finding $9K.