The SCO Group Inc. said Thursday it will appeal a Nasdaq staff determination that the company failed to follow a market rule that potentially could lead to the company's stock being delisted from the Nasdaq SmallCap Market.
The Lindon-based company, the subject of several lawsuits regarding the alleged misuse of its Unix computer operating system software code, received notice from Nasdaq on Wednesday that it faced delisting because it did not file its Form 10-K with the U.S. Securities and Exchange Commission for the fiscal year ended Oct. 31, 2004, in a timely fashion.
Nasdaq said it would delist the company's securities at the start of business Feb. 25. In the meantime, the stock will be listed with an "E" at the end of its trading symbol, "SCOX."
However, that delisting would be delayed if the company requests a hearing on the delisting notice, and SCO said Thursday it would do just that, taking its case to the Nasdaq Listing Qualifications Panel.
"The company has been unable to file its Form 10-K for the fiscal year ended Oct. 31, 2004, because it continues to examine certain matters related to the issuance of shares of the company's common stock pursuant to its equity compensation plans," SCO said in a prepared statement Thursday. "The company is working to resolve these matters as soon as possible and expects to file its Form 10-K upon completion of its analysis."
SCO stock fell 22 cents, or more than 5 percent, Thursday to close at $4.08 per share on Nasdaq. During the past year, the price has ranged from $2.76 to $14.50.
E-mail: bwallace@desnews.com