Merriman Curhan Ford Group, Inc. (Nasdaq: MERR) believes it has regained compliance with NASDAQ's listing requirements by removing the ratchet provision in the Series D warrants that were issued during its oversubscribed strategic transaction on September 8, 2009.
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As a result of removing the ratchet provision, Merriman Curhan Ford Group, now records a substantially smaller warrant liability and consequently has stockholders' equity of a magnitude well in excess of that required to meet NASDAQ listing requirements as of this date. This will be reflected in the company's Form 10-K for the fiscal year ended December 31, 2009. As of December 28, 2009, the company received binding written agreements from 96% and a verbal consent from the remaining 4% of the warrant holders agreeing to amend these warrants to remove the ratchet provision. Consistent with generally accepted accounting principles and as a result of the ratchet provision, the company valued the warrants and recorded a non-cash warrant liability of $26 million at September 30, 2009. This non-cash liability caused a stockholders' deficit, which has now been cured by removing the ratchet provision. Merriman Curhan Ford is a financial services firm focused on fast-growing companies and the institutions that invest in them. Merriman Curhan Ford Group, offers high-quality investment banking, equity research, institutional services and corporate & venture services, and specializes in five growth industry sectors: CleanTech, Consumer, Media & Internet, Health Care, Natural Resources and Technology
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