Orange 21 says it has received approval of its request to transfer its listing to the Nasdaq Capital Market, with effect from May 8. The parent company of Spy Optic had made the request after receiving a notice from Nasdaq last April 21 that it no longer met the requirements to be listed on Nasdaq's Global Market. For this larger market, a company must maintain $10 million in stockholders' equity. Orange 21 felt that it was more beneficial to the company to transfer its listing than to try to maintain its Global Market listing. The company said the transfer could result in some minor savings.
For the full year 2008, net sales of Orange 21 grew by 2 percent to $47.3 million. In the first six months they grew by 20 percent, but they fell by 9 percent in the third quarter and by 19 percent in the fourth one. The company said the decreases in the second half were due to the slumping economy and customers' trimming discretionary spending.
The gross profit for the year was off by 7 percent to $21.3 million because of the euro's strengthening against the dollar in the first half of 2008 and increased discounting and a drop in sales in the second half.
Last January, the company allowed its shareholders to buy new stock at 80 cents per share, which raised $2.4 million in new equity for Orange 21. In a conference call, the chief executive, Stone Douglass, said the company has more recently allocated unsubscribed rights to additional investors, resulting in about $500,000 of additional investment. It also cut the pay of its American workers by 10 percent, saving about $75,000 per quarter. Another $500,000 was saved by arranging a compensated 13-week leave program for its Italian workers.