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Nasdaq Delists Stock of Aura Systems

July 22, 1999|Tom Petruno

The Nasdaq Stock Market has delisted shares of El Segundo-based Aura Systems, citing the company's inability to provide audited statements to the Securities and Exchange Commission and failure to maintain a minimum $1 bid price. Trading in the shares was suspended June 17 with the last price at 22 cents. Aura, meanwhile, said it has reached an agreement in principle with its two largest debt-holders to convert their $35 million in bonds to common stock. Under the plan, $41 million in bonds would be converted to 32.4% of Aura stock, severely diluting existing shareholders' stake. Aura said the deal hinges on an infusion of $10 million in capital via a private placement of stock. The company said it has paid its auditors, allowing its audit to proceed. It also said it would initiate a 1-for-20 reverse stock split if its recapitalization succeeds.

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