Merge Technologies will continue to be listed on the NASDAQ national market -- for the time being at least. The company announced Friday that it had been told by the NASDAQ Listing Qualification Panel that its review of Merge is ongoing but that the company will remain listed at least until the review is completed.
The company's listing came under scrutiny because financial documents for the fiscal year ended Dec. 31, 2005, and the quarter that ended March 31, 2006, had not been filed. It had been given until July 7, to do so. In a news release, the company said it expects to have these documents filed by the end of the 2006 third quarter.
On July 2, the Milwaukee-based provider of medical-imaging and information-management software and services announced that three of its top executives had resigned and that the company's financial statements for quarters ended June 30, 2005, and Sept. 30, 2005, "should no longer be relied upon due to certain material errors."
The news led to a dramatic drop in the company's stock value. Shares of Merge stock closed at $7.30 on July 2, a reported decrease of $5.01 from $12.31. The price had reached as high as $30.05 on Dec. 2, 2005. The stock closed at $6.61 on Friday, July 7, having dipped as low as $5.87. It opened today at $6.60.
The company's woes stem from its merger with Cedara Software Corp., Mississauga, Ontario, in June 2005. Seven class-action lawsuits have also been filed against the company on behalf of persons who acquired stock between Aug. 2, 2005, and March 16, 2006.