Alanco Receives NASDAQ Notification Relative to
Certain Series E Preferred Stock Voting Rights
February 03, 2010 04:15 PM Eastern Time
SCOTTSDALE, Ariz.--(EON: Enhanced Online News)--Alanco Technologies, Inc. (NASDAQ: ALAN) said
today that it received a letter from NASDAQ on January 29, 2010, indicating that the Company was out of
compliance with Nasdaq rules pertaining to voting rates relative to the issuance of 205,000 shares of Series E
Preferred Stock that has a heavier voting rate than the Company’s outstanding Class A Common Stock, in violation
of Nasdaq’s voting rights rule and policy set forth in Listing Rule 5640 and IM-5640 (“the Rule”).
The Series E Preferred Stock issued allowed the investors to vote the number of votes equal to the number of Class
A Common Shares into which the Series E Preferred Stock is convertible. Under the Rule the holder of Series E
Preferred Stock would be limited to the lesser of (i) the number of shares of Class A Common Stock into which the
Preferred Stock is convertible, or (ii) that number which is equal to the purchase price per share of Series E
Convertible Preferred Stock paid by the shareholder to the Company divided by the closing consolidated bid price
of the Class A Common Stock on the trading day immediately previous to the issuance of the shares of Series E
Convertible Preferred Stock. The maximum voting effect, assuming the maximum votes by the Preferred E
stockholders, would be less than 1% of the outstanding voting rights.
The Company has until February 15, 2010 to submit a plan to regain compliance. If the plan is accepted, Nasdaq
can grant an extension of up to 105 calendar days from the date of this letter to evidence compliance.
The Company is currently obtaining amendments to the purchase agreements modifying the voting rights to comply
with the Rule. Once the amendments have been executed, the Company will amend the designation of the Series E
Preferred Stock to comply with the Rule.
Alanco Technologies, Inc. provides w