Nasdaq Listing Council Will Not Stay Delisting.
ArthroCare Corp. announced that it received a waiver today from the Lenders and the Administrative Agent under its Credit Agreement of the event of default relating to the delisting of the Company’s stock. Under the terms of the waiver, the Company has prepaid $10 million of the principal amount (plus accrued and unpaid interest) outstanding under the Credit Agreement. The other terms of the waiver are substantially identical to the waiver granted on November 26, 2008. Management believes that, following the partial repayment under the Credit Agreement, based on the Company’s current operating and capital expenditure forecasts, the combination of funds currently available and funds to be generated from operations will be adequate to finance the Company’s ongoing operations for the short and long-term.
The Company also announced that it received notice on January 15, 2009 that the Nasdaq Listing and Hearing Review Council has rejected the Company’s request for a review. As a result the Nasdaq Listing Qualifications Panel’s decision to suspend trading of and delist the Company’s common stock on The Nasdaq Stock Market became effective at the open of trading today, January 16, 2009. The Company noted that in excess of 15 market makers are making a market in its common stock on the “Pink Sheets” today, under the symbol ARTC.PK.
Michael Baker, ArthroCare’s CEO, said, “We are gratified by the continuing support of our banks as evidenced by their waiver. While we are disappointed by the delisting, we are pleased to see such a large number of market makers continue to trade our common stock. This provides liquidity for our shareholders as we complete the restatement process required to bring our SEC filings up to date.”