Brocker awaits shareholder votes

Brocker Technology Group is counting on its shareholders' casting favourable votes on April 11 to stop a forced delisting from the Nasdaq in mid-May.

Brocker Technology Group is counting on its shareholders’ casting favourable votes on April 11 to stop a forced delisting from the Nasdaq in mid-May.

Brocker’s share price has been below the minimum $US1 mark since December 11, falling further to the 34c range when it resumed trading after a three-week suspension incurred because of accounting problems in Australia. The clock has started again after those three weeks – and the process of 30 consecutive business days, followed by a notice and 90 calendar days finishes roughly in mid-May, Brocker spokesman Nigel Murphy says. Computerworld places it at May 17.

Brocker’s share price rose to 40c after it announced a major contract with Energex before dipping and rising to 37c after the release of its third-quarter results, and in this range will rise to $1.48 if shareholders approve the four-to-one consolidation vote at the special meeting.

DF Mainland research head Bruce McKay says passing the vote is in shareholders’ favour, but investors may be uncomfortable with Brocker’s diversification into e-commerce and away from sure-bet (albeit low-margin) distribution revenues.

Murphy is upbeat, saying a possible delisting wouldn’t have much effect on Brocker’s business. “We went to considerable expense to get there because it is the largest capital market, but we were successful before we went on the Nasdaq.”

Brocker is not alone - it is one of a number of Nasdaq-listed computer and software companies below the $US1 range and its troubles come as US reports from Bancorp Piper Jaffray and IDC say times are tough in the IT distribution, hardware and reseller industries.

See Road to listing offshore harder than the hype

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