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The communication follows a notice of noncompliance from NASDAQ datedSeptember 6, 2007, which was disclosed by the Company on September 7, 2007,that indicated that the Company failed to comply with the minimum bid pricerequirement for continued listing set forth in Rule 4310(c)(4). The notice ofnoncompliance gave the Company notice that the bid price of its common stockhad closed under $1.00 per share for the previous 30 business days, and statedthat if the Company could not demonstrate compliance with Rule 4310(c)(4) byMarch 4, 2008, the NASDAQ staff would determine whether or not the Companymeets The NASDAQ Capital Market initial listing criteria set forth in NASDAQMarketplace Rule 4310(c), except for the bid price requirement.
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The bid price requirement was met in part as a result of the 1-for-10reverse stock split of the Company's outstanding common stock effected by thefiling of the Company's Third Amended and Restated Certificate ofIncorporation on February 29, 2008, which was disclosed by the Company onMarch 3, 2008. The reverse stock split was effective with respect tostockholders of record upon the close of business on March 3, 2008.
The common stock has been traded on the NASDAQ Capital Market under thesymbol "VRMLD" beginning on March 4, 2008, to designate that it is trading ona post-reverse-split basis, and will resume trading under the symbol "VRML" onApril 2, 2008.
The Company also announced today that, on March 25, 2008, the Companyreceived a letter from the Listing Qualifications Staff of NASDAQ (the "StaffDetermination") notifying the Company that, based upon the Company'snon-compliance with the $35 million market value of listed securitiesrequirement for continued listing on The NASDAQ Capital Market, as set forthin NASDAQ Marketplace Rule 4310(c)(3)(B), the Company's securities are subjectto delisting from NASDAQ unless the Company requests a hearing before a NASDAQListing Qualifications Panel (the "NASDAQ Panel").
The Company plans to timely request a hearing before a NASDAQ Panel, whichwill stay any action with respect to the Staff Determination until such NASDAQPanel renders a decision subsequent to the hearing. The Company anticipatesthat the hearing will be scheduled to occur within the next 45 days. Therecan be no assurance that such NASDAQ Panel will grant the Company's requestfor continued listing.
The Staff Determination follows correspondence from NASDAQ datedFebruary 22, 2008, which was disclosed by the Company on February 27, 2008,that, should the Company fail to regain compliance with the market value oflisted securities requirement by March 24, 2008, NASDAQ would provide writtennotification of such and the opportunity to request a hearing before theNASDAQ Panel.
The Company also announced today that that in its 2007 financialstatements to be included in the Company's Annual Report on Form 10-K, whichthe Company expects will be filed on March 31, 2008, the audit opinion ofPriceWaterhouseCoopers LLP will contain a "going concern" qualification.NASDAQ's marketplace rules require NASDAQ-listed companies to publiclyannounce the receipt of an audit opinion containing a "going concern"qualification.
The Company's Annual Report on Form 10-K will be available from the U.S.Securities and Exchange Commission's website at http://www.sec.gov or the"Investor Information" sectio
