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(Bloomberg) — Super Micro Computer Inc. investors have spent two months waiting for the company to file a plan that would allow it to remain listed on the Nasdaq exchange. With the deadline now just days away, that plan is yet to materialize.
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The server maker has until Monday, Nov. 18, to either file a delayed 10-K annual report or submit a plan to file the form to Nasdaq to be in compliance with the exchange’s rules. Super Micro’s original deadline for filing the plan was Saturday, Nov. 16 but in accordance with the Nasdaq’s rules: If the last day of the period is a Saturday, Sunday, federal or Nasdaq holiday, the period then runs until the end of the next day that is not one of those days.
“As we previously disclosed, Super Micro intends to take all necessary steps to achieve compliance with the Nasdaq continued listing requirements as soon as possible,” a Super Micro spokesman said. Shares of Super Micro were up as much as 2.8% in early trading on Friday.
Super Micro delayed its annual filing in August following a damaging report from short seller Hindenburg Research. The company is also facing a US Department of Justice probe, and its auditor, Ernst & Young LLP, resigned in October, citing concerns about Super Micro’s governance and transparency.
This week, Super Micro postponed filing its quarterly 10-Q form for the period ending Sept. 30. The company also said that the committee its board formed to review internal controls had finished its investigation stemming from concerns raised by Ernst & Young, and that while it “has other work that is ongoing” it expects the review to be completed soon.
“Whatever the results are would probably play into whatever their plan is” to hire a new auditor and file their financial reports, Matt Bryson, an analyst at Wedbush, said by phone. “I wouldn’t be shocked if something comes out over the next couple of days.”
Super Micro shares have tumbled nearly 70% since announcing it would be delaying its annual filing in August. The losses are even steeper when measured from the stock’s record high in March. More than $55 billion in value has been erased over that span as Super Micro shares plunged 85%.
If the company submits a plan that Nasdaq approves, its deadline to file will likely get extended into February. If a plan is not approved, the company can appeal the decision. Nasdaq declined to comment.
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