Basin Water Inc plans to dodge Nasdaq stock delisting

     Wastwater services company Basin Water Inc. (Nasdaq: BWTR) said on Wednesday that it will request a hearing with Nasdaq stock exchange officials so it can postpone a scheduled Monday stock delisting.
     The request ensures that shares will stay listed for the time being.
     But if the stock is eventually delisted, the Rancho Cucamonga company would most likely get downshifted to a smaller exchange, closing the door to institutional investors with deeper pockets.
     Basin Water announced last week that it couldn’t file a second-quarter financial report on time because an internal audit committee and independent attorneys were reviewing money transactions.
     The stock closed at $1.78 on Wednesday, down from about $17 when the company went public in May 2006.
     The company might have to restate financial statements for certain periods, according to a previous statement.
     It doesn’t expect analysts’ 2008 revenue estimates of $26 – $36 million will be reached, but instead will report “significant changes” in financial results for the first six months of this year compared to the same period last year.
     “The company may be reexamining the transfer of water rights to its affiliate, Empire Water, which was completed in the fourth quarter last year,” states an Aug. 11 research note published by Janney Montgomery Scott LLC investment firm. “Another possible catalyst for the reassessment is the company’s sale of receivables to third-party financial groups.”
     The company lost $5.1 million in the first quarter, on top of other quarterly losses in 2007.
     Basin Water doesn’t expect to report its financials until after the internal audit is completed.
     The company had about $23 million in cash as of June 30.
     –matthew.wrye@inlandnewspapers.com

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