CAMPBELL, CA--(Marketwired - Jul 1, 2013) - Rainmaker Systems, Inc. (
"As we were processing our appeal, we continued to carefully evaluate our options to maintain our listing on NASDAQ," stated Don Massaro, president and CEO of Rainmaker. "That included whether or not to implement a reverse split to satisfy the minimum share price requirement."
"Our detailed review involved looking at many factors, including the costs associated with the compliance obligations and restrictions that result from listing on NASDAQ," said Massaro. "We believe there is significant benefit to existing and future shareholders to move our common stock to the OTC. The Company's common stock will continue trading on the OTC under the ticker RMKR. In addition, we have begun the process to upgrade our listing to the OTCQX, the OTC's premier tier, as we believe it will offer benefits similar to a traditional exchange listing with major institutional investor participation and strong liquidity."
The move to the OTC does not alter the Company's SEC reporting obligations under applicable securities laws. Accordingly, the Company will continue to file its Quarterly Reports on Form 10-Q, Annual Reports on Form 10-K and Current Reports on Form 8-K.
As previously disclosed, the Company faced delisting due to violation of Listing Rule 5550(b)(1) because its stockholders' equity had fallen below the required minimum. Due to the NASDAQ Hearings Panel not having sufficient information to conclude that the Company would regain compliance before the applicable deadline, the Panel decided to delist the Company's stock. The Company's subsequent request to file an appeal was confirmed by the NASDAQ Office of Appeals and Review on June 13, 2013.
NASDAQ will in due course process and file a Form 25 with the Securities and Exchange Commission to effect the delisting of our common stock from NASDAQ.
Rainmaker Systems, Inc. (RMKR) is a B2B e-Commerce company that helps organizations of all sizes, ranging from Fortune 500 enterprises to small-to-medium-sized businesses, create new revenue streams from segments of their customer base that extends beyond traditional sales team capabilities. With its unique approach, Rainmaker delivers proprietary cloud-based e-commerce technology, global and localized sales-assist agents, and best-practice sales and marketing expertise, allowing customers to discover and monetize untapped revenue opportunities. For more information, please visit www.rainmakersystems.com or call 800-631-1545.
Safe Harbor Statement
This press release may contain forward-looking statements regarding future events. These forward-looking statements are based on information available to Rainmaker as of this date and the Company assumes no obligation to update any such forward-looking statements. These statements are not guarantees of future performance, and actual results could differ materially from current expectations. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are client concentration, as the company depends on a small number of clients for a significant percentage of its revenue; the possibility of the discontinuation and/or realignment of some client relationships; general market conditions, the current difficult macro-economic environment and its impact on Rainmaker's business, as clients are reducing their overall marketing spending and their customers are reducing their purchase of service contracts; market acceptance of our service programs and pricing options; the financial condition of our clients' businesses and other factors detailed the company's filings with the Securities and Exchange Commission (SEC), including our filings on forms 10-K and 10-Q.