I've worked with and for a few public companies, one of which was recently delisted from NASDAQ.
Delisting lowers the liquidity of the stock. It doesn't directly kill the company, but by making it far less convenient to buy and sell, the stock becomes less liquid (which is a measurement of how easy it is to turn it into cash) and investors are far more likely to sell rather than buy, just to get out of their positions. The stock can continue to trade Over-The-Counter (OTC:BB) or in the pink sheets, or on alternate exchanges if it meets their requirements.
There are many options. As some have noted, a reverse split is possible. However, this is not generally a good move with the shareholders, as you reduce the number of their held shares by the factor of the reverse split. For example, let's say you had 100 shares of VA. A 1-for-10 reverse split could theoretically take the stock price from $0.97 to $9.70, but in turn you would now only have 10 shares. If VA was heavy in cash and felt like propping up the stock, they could buy back some of the outstanding shares (particularly given NASDAQ's recent lifting of certain rules of behavior), thereby reducing the total float and placing some buy activity on the board. They could also find some other small company that is listed on NASDAQ and merge/reverse merge with them to convert the VA shares into liquid shares of the new company, and hope that they don't tank the new stock as well. Or they could just get bought by someone like IBM who has a strong stock price and convert the VA shares into the liquid new company shares.
Delisting doesn't necessarily mean death, but it typically means that unless your company has lots of cash sitting around, then you're in for some interesting changes in organization, personnel, and perhaps ownership. VA's strongest point, in my opinion, is the intellectual capital of its developers. Whether someone will buy VA to get those people, or simply let VA die and then hire them, is an open question.
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