Digital Angel started out on the OTCBB several years ago, and now they are headed back. The cost of remaining on the NASDAQ can be cost prohibitive. In recent news the company recently rejected an offer from PositiveID (NASD:PSID) to acquire the company; PositiveID promptly withdrew its offer.
Digital Angel's gross and net income have dipped dramatically over the last three years. It is not clear if the recent decline is intentional, or if demand for the company's product has declined.
On September 29th, the company suggested increased demand for their Destron Fearing electronic identification products in Canada as a result of recent animal health and traceability incentive programs and regulations.
"Federal regulation requires that all Canadian cattle be tagged with an approved Radio Frequency Identification (RFID) tag prior to moving from their current location or leaving their farm of origin. The Canadian Food Inspection Agency (CFIA) is enforcing the national identification and movement reporting requirements for cattle under the authority of the Health of Animals Regulations."
The company has struggled, however they have managed to generate significant revenues. As an OTCBB company they are attractive because they have revenue. It will be interesting to see if Digital Angel finds its way to profitability,or if the are acquired!
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