Boston, MA 10/06/2014 (wallstreetpr) – According to reports, Corinthian Colleges Inc (NASDAQ:COCO) recently received a notice from NASDAQ stock market for not working in compliance with its Listing Rule 5250(c)(1). The rule requires all the companies to file their documents and various reports to US Securities and Exchange Commission on time. The notice was sent to COCO by NASDAQ due to its failure in filing annual report on Form 10-K for the previous fiscal year that ended June 30, 2014.
What’s the effect of this notice:
As per the information, the notice will not have any immediate negative effect on Corinthian Colleges Inc (NASDAQ:COCO)’s common stock listing on the stock exchange of NASDAQ’s Global Select Market. As the company has received the notice; therefore, it will have to submit a plan within 60 days time in order to regain compliance rights.
If the plan suggested by the company is accepted, then it may further earn an extended timeline of up to 180 days from the 10-K due date for submitting an application and regaining compliance. When it filed form 8-K previously, it disclosed an operating agreement transaction that it signed with the US Department of Education.
per the disclosed information, the agreement became effective from July 8, 2014. It required the company to made public, certain documents within a pre-specified timeline. One of the conditions of this agreement was to teach out and close 12 of its schools and also stat the selling process of remaining Title IV-eligible schools.
Due to these additional conditions and minimum requirements, Corinthian Colleges Inc (NASDAQ:COCO) is under extra amount of pressure to utilize all of its resources in an effective manner. It is not letting the company obtain complete information that is needed to fulfill all the requirements of Form 10-K. It is the main reason behind delay in filing the form 10-K.