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RMG loses compliance with Nasdaq listing rule

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RMG loses compliance with Nasdaq listing rule

The Nasdaq Stock Market LLC on Aug. 9 told RMG Networks Holding Corp. that it is noncompliant with a listing standard due to the resignation of three directors.

The resignation of Jeffrey Hayzlett, Alan Swimmer and Jonathan Trutter, effective Aug. 2, resulted in the company having only one independent director and no members remaining on its audit and compensation committees.

According to an Aug. 14 SEC filing, Nasdaq has given RMG until Aug. 23 to submit a plan to reach compliance with the listing requirement. The company said it is considering its options.

In April, an affiliate of Gregory Sachs, RMG's executive chairman, struck a definitive agreement to purchase RMG for about $16.8 million, including the assumption of about $2.7 million of debt. In June, RMG's special committee of independent directors announced that the company had received an alternative acquisition proposal from a third party, but it did not deem it a superior proposal.

Hayzlett, Swimmer and Trutter left the company a day after the board held the meeting in which it failed to declare the alternative proposal a superior offer.