Posted 8/27/2009 10:19 am
Updated 2 years ago
Advanced Environmental Recycling Technologies Inc., a Springdale-based plastic recycler and manufacturer of "green" building products, filed an action seeking a declaratory judgment in Delaware chancery court on Wednesday.
AERT claims it is in compliance with the terms of its Series D preferred stock issued in October 2007 (Advanced Environmental Recycling Technologies Inc. vs. Fort Mason Master LP and Fort Mason Partners LP). The company also seeks a ruling to clarify its obligation with respect to late registration penalties attributable to delays in getting the S-3 resale registration statement effective as a result of circumstances beyond its control.
AERT, which operates manufacturing facilities in Springdale and Lowell, and a raw materials facility in Junction, Texas, is not seeking monetary damages. The company also has a recycling facility under construction in Watts, Okla.
Nasdaq told AERT in June the company's request for continued listing on the Nasdaq Capital Market had been denied. AERT also was told that to regain compliance, the company must appeal to a qualifications panel and complete its recapitalization plan.
AERT participated in a hearing on Aug. 6 in Washington, D.C., and is awaiting the panel’s decision. An AERT spokesperson said the panel indicated it could take up to 30 days to render its decision, which could result in a six-month extension.
AERT said shareholders had voted to authorize a reverse stock split of up to 1-for-20 at its annual meeting. In April, the company revealed in a released proxy statement the company would be delisted by Nasdaq if it didn't bring its stock price back above $1 per share for the 10 days leading up to Sept. 19. AERT was trading at 51 cents a share at noon Thursday.