Med Diversified runs afoul of stock exchange
ANDOVER, Mass. - Med Diversified, the high-flying Internet company that's trying to remake itself as a one-stop shop homecare provider, is in hot water with the American Stock Exchange (AMEX).
AMEX claims that during 2001 Med Diversified did not comply with a number of stock exchange standards. Among the charges: Med Diversified issued additional stock without AMEX approval; made misstatement in public filings; and its financial condition is impaired to the point of being con-compliant with listing standards.
Med Diversified has appealed the charges, but if the appeal fails the company will most likely be delisted from AMEX and land on the Over-the-Counter Bulletin Board, the company stated in a release.
As of press time, the company's stock was trading at 21 cents a share, down significantly from its 52-week high of $4.51. "They have very serious trouble," said one industry watcher.
The OTC handles small company's and larger companies that for whatever reason don't qualify for AMEX, NYSE or other major exchanges. The OTC doesn't receive the same level of regulatory oversite that the major exchanges do and the stock is often viewed as tarnished. As a result, institutional investors often shun OTC companies
Med Diversified officials did not return phone calls.
The company operates companies in various segments within the home healthcare industry, including pharmacy, home infusion, multi-media, management, clinical respiratory services, home medical equipment and home health services. HME