Charlotte-based restroom cleaning company Swisher Hygiene said Tuesday it faces delisting by the Nasdaq stock exchange, after the company disclosed that it remains unable to file required financial statements.
The companys former CEO resigned in August, in the midst of an ongoing internal investigation into improper financial practices.
Swishers stock plunged more than 16 percent by early Thursday afternoon, to $1.45 a share. In April 2011, Swisher peaked at $10.50 a share, a five-year high.
The company was granted an extended deadline of Sept. 26 to file its annual report for 2011 and its quarterly reports for the first two quarters of this year. But last week, Swisher notified Nasdaq it wont be able to meet those deadlines. That means it could be delisted, the company said in securities filings Tuesday.
Swisher hasnt filed any regular financial reports with the Securities and Exchange Commission since last November.
We are disappointed that the review process remains ongoing and that we continue to be in non-compliance with NASDAQ, said Swishers interim CEO Thomas Byrne, in a statement. While the process remains ongoing, Swisher Hygiene continues to conduct its day-to-day business and remains dedicated to providing outstanding customer service.
The company is headquartered at Piedmont Row, in the SouthPark area. Swisher intends to request a hearing about Nasdaqs delisting, which would grant it an automatic 15-day extension. Swisher hopes to stay listed while a Nasdaq panel makes a final decision, which could take anywhere from one to six weeks.
However, Swisher Hygiene cannot provide assurance that the Panel will grant the company a stay of Staffs delisting determination, the company said.
Swishers latest problems began after the company fired its chief financial officer and two other employees and disclosed it is investigating improper accounting practices. The investigation will likely cause Swisher to state millions of dollars worth of losses and change its financial results for previous quarters, the company said in securities filings.