Tech Firm’s Shares Moving to SmallCap

Nasdaq plans to transfer Emergent Information Technologies Inc.’s shares to the SmallCap Market from the National Market, effective May 30.

Emergent, a Newport Beach provider of information technology services and software, said its tangible net assets are below the minimum level of $4 million required for a National Market listing.

The company’s purchase of five businesses during the last two years, investments in proprietary software and the repurchase of $9.3 million of its shares in 1999 reduced Emergent’s tangible net worth below the $4 million threshold, Emergent said.

The company’s stock dropped to a 52-week low of $3.16 a share before closing at $3.44, down 56 cents for the day.