NASDAQ warns DJSP about low stock price
DJSP Enterprises (DJSP), whose main customer is the Law Offices of David J. Stern, is in violation of NASDAQ’s rule that stock must trade at $1 or more to be listed on the exchange, the company said Tuesday in a regulatory filing. DJSP said it was notified by NASDAQ on Dec. 15 of the failure to maintain the minimum $1 stock price for the previous 30 days, and the potential delisting of the stock. Earlier in the month, DJSP reported additional NASDAQ delisting warnings related to the stock’s total market value. DJSP will have 180 calendar days, or until June 13, 2011, to regain compliance with NASDAQ minimum stock trading rules. NASDAQ will deem the company in compliance if its stock closes at $1 per share or more for a minimum of 10 consecutive business days, DJSP said in a regulatory filing with the Securities and Exchange Commission. In the same filing, DJSP said it will no longer be classified as a “foreign private issuer” effective Jan. 1 because a majority of its shareholders are citizens or residents of the United States, and due to other criteria, including having a majority of officers or directors who are U.S. citizens or residents. DJSP will be a “smaller reporting company” for purposes of Securities and Exchange Commission rules going foward. As a result, it will no longer be exempt from certain “foreign private issuer” filing rules, such as exemptions from filing annual and quarterly financial reports. DJSP will meet additional reporting requirements, including the filing of quarterly and annual reports with the SEC going forward, including an annual report for the year ending Dec. 31, the company said. In November, a DJSP subsidiary defaulted on a bank line of credit, and the Plantation, Fla.-based David J. Stern law firm, once among the largest foreclosure firms in the state, has faced a loss of business in connection with a Florida attorney general investigation into foreclosure practices, including robo-signing of foreclosure documents. Write to Kerry Curry.