Netlist delists from Nasdaq, moves to OTCQX

Chipmaker Netlist Inc (Nasdaq:NLST) is leaving the Nasdaq and will trade on the OTCQX, under its current ticker symbol NLST, starting tomorrow.

As previously disclosed, Netlist failed to meet the requirements for maintaining its listing on the Nasdaq and fell short of maintaining the exchange’s minimum bid price of $1 per share.

After discussion and deliberation, Netlist’s management decided to avoid the dilutive effects of a reverse stock split to lift the company’s share price and stay on the Nasdaq and opted instead to move to the OTCQX.

READ: Netlist shares tumble on announced secondary offering

Netlist shares had been on a tear in recent weeks, more than doubling after the company won a key advance in its patent infringement case against South Korean chipmaker SK Hynix.

But its shares had traded below the key $1 threshold since August of 2017.

The US International Trade Commission this month issued a claim construction order favorable to two of Netlist’s patents. The order examined SK Hynix’s RDIMM and LRDIMM enterprise memory products. Netflix alleges that these two products were made using its intellectual property and is looking for damages.

Since the claim construction order acts as a framework for the International Trade Commission to work off of when deciding if patents have been infringed, the Commission effectively took Netlist’s side and it appears that Netlist now has an advantage as the litigation proceeds.

Netlist manufactures modular memory subsystems suitable for high-performance computing and other information technology equipment.

Story by ProactiveInvestors