Breaking: Trading on OCZ shares suspended

At this moment trading of OCZ shares has been suspended  by the NASDAQ. The shares are currently frozen at a value of $0.63. At this moment nobody can buy or sell OCZ shares. The status of OCZ stock is currently, “Halt – News Pending”, which means trading is halted pending the release of material news.

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The company had difficulties to publish their results over previous quarters which was required to remain listed on the NASDAQ. Due bad financial management caused by the former CEO, the company had trouble to meet the these requirements.  Last month the company was finally able to post the results and they weren’t encouraging. However, the last quarter showed the company is working hard to get their results up again. The new CEO of the company, Ralph Schmitt, is trying to clean up the mess that was left.

Unfortunately it wasn’t the only issue the company was facing. Growth capital provider Hercules would also supply a $20 million cash injection if OCZ would meet certain conditions. Unfortunately the company was unable to meet these conditions and had to amend a loan and security agreement with Hercules which also cancelled 3.9 million in warrants. OCZ also has to payback the loan to Hercules by June 2014, together with a $6.5 million loan fee.

OCZ seems to be doing well on the enterprise side, but has difficulties on the consumer markets, mainly due issues with NAND supplies. Clearing the inventories impacted margins but the company hopes that it will benefit from that on the long term. Recently also rumors popped up saying OCZ’s struggling consumer SSD division might be purchased by Toshiba.

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