Investment allows XATA to comply with Nasdaq rule

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XATA Corp., a provider of onboard fleet management systems, announced that it has closed on a $5 million investment by Trident Capital, allowing the company to meet Nasdaq listing requirements.

As previously announced, XATA received a letter on Aug. 26 from Nasdaq notifying the company that it was not in compliance with a rule that requires a company to have a minimum $35 million in market value of listed securities, $2.5 million in shareholders’ equity, or $500,000 in net income from continuing operations for the most recently completed fiscal year, or two of the three most recently completed fiscal years.

Nasdaq informed XATA that it would be provided 30 calendar days, or until Monday, Sept. 26, to regain compliance with the rule.

“Nasdaq has advised us that it will continue to monitor our ongoing compliance with the shareholders’ equity requirement and, if at the time of our next SEC filing we meet the compliance requirement, this matter will be closed,” said Mark E. Ties, chief financial officer of Minneapolis-based XATA. “If our next SEC report does not show compliance, we may be subject to delisting. We believe that with the completion of this transaction with Trident Capital, we meet the Nasdaq listing requirements.”

Trident Capital is an existing investor in XATA and has $1.6 billion in capital under management, focusing on information services and enterprise software.