IRVINE, Calif. -- On May 8, 2007, MTI Technology Corporation (the "Company") received a letter from The Nasdaq Stock Market ("NASDAQ") formally notifying the Company that it had not regained compliance with the minimum bid price requirement for continued listing set forth in Nasdaq Marketplace Rule 4310(c)(4) during the 180-day period previously provided to the Company under NASDAQ listing rules. As previously disclosed, MTI received a letter from NASDAQ on November 7, 2006, indicating that, because the bid price of the Company's common stock had closed below the minimum $1.00 bid price requirement for the prior 30 consecutive business days, the Company had been provided 180 calendar days, or until May 7, 2007, to regain compliance with the bid price requirement. Because NASDAQ determined that the Company did not regain compliance during the 180-day period, NASDAQ informed the Company that the NASDAQ Listing Qualifications Panel will consider the bid price deficiency at the hearing previously scheduled for May 24, 2007 regarding MTI's continued listing on the NASDAQ Capital Market.
As previously disclosed in the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on March 14, 2007, on March 8, 2007 the Company received a NASDAQ notification indicating that the Company did not comply with the minimum $35 million market value of listed securities requirement for continued listing on the NASDAQ Capital Market. At the May 24, 2007 hearing, the Company will present its plan to comply with the minimum market value of listed securities and bid price requirements for continued listing on the NASDAQ Capital Market. The NASDAQ Listing Qualifications Panel may grant the Company's request for continued listing, but there can be no assurance that it will do so.
On May 11, 2007, the Company issued a press release announcing its receipt of the May 8, 2007 letter. A copy of the press release is attached hereto as Exhibit 99.1. A copy of the May 8, 2007 letter from Nasdaq is attached hereto as Exhibit 99.2.
Item 9.01 Financial Statements and Exhibits.
MTI Technology Corp.