Published in News
Qimonda is in major trouble
by Fudzilla staff on11 November 2008
Stock falls below NYSE minimum, could be delisted
Qimonda is having some problems with its share prices and unless the company can get things sorted out, they'll be delisted from the New York Stock Exchange. To be listed on the NYSE the shares need to be traded at US$1.00 or more and Qimonda has been trading below this for the last 30 days.
This is indeed bad news, although Qimonda issued a press release stating that the company is going to take steps to get its shares up to the required level within the next six months. Qimonda will have to inform the NYSE about its intent to get its shares trading at the right level and if it can't manage to get the shares up to the right level or higher within the next six months, Qimonda will be delisted.
We're hearing rumors in the industry from some of Qimonda's competitors that they're not expecting Qimonda to stay in business for much longer, as the company has already lost too much money and its main owner, Infineon, isn't likely going to be patching things up. One of the reasons for this is that Infineon doesn't want to pay back large sums of money given to Qimonda by the German government in subsidies for its memory plants there.
You can find the official press release here