Hawai'i's three publicly traded technology companies — Hoku Scientific Inc., Cyanotech Corp. and Mera Pharmaceuticals Inc. — are having a tough year in terms of share price.

Big Island-based Cyanotech's shares have fallen to 43 cents, down 34 percent this year. Yesterday the company announced it will do a reverse stock split, combining four existing shares into one new share, in an attempt to boost value.

Shares of Kapolei-based Hoku Scientific have fared even worse this year, falling 50 percent after the company failed to meet growth expectations. And shares of Kailua, Hawai'i-based Mera Pharmaceuticals Inc., which started the year worth 2 cents each, have fallen to less than a penny.

In comparison, the tech-heavy Nasdaq Composite Index yesterday was up about 1 percent year-to-date.

The low returns for Hoku, Cyanotech and Mera this year does little to help efforts to make Hawai'i a high-technology hub.

Low share prices also have numerous practical implications. In addition to inciting investor ire, low stock prices can limit a company's ability to sell stock to raise cash or use stock for acquisitions.

"That's a consideration; as the stock price declines there are fewer institutions that will buy your stock and that limits your options for financing," said David Watumull, chief executive for 'Aiea-based Cardax Pharmaceuticals Inc.

Low stock prices also can make it harder to attract and retain workers. And for investors, low-priced stocks can be difficult to trade or use as collateral for margin loans.

Cyanotech's stock woes have lasted for several years. The company was nearly delisted in 2003 for failing to meet the Nasdaq's minimum bid price of $1 a share. This month the company was unable to avoid delisting because of a failure to file required earnings statements. Cyanotech's shares now trade on the OTC Bulletin Board, which is largely ignored by institutional investors and most individual investors.

Cyanotech's reverse stock split will be completed by Nov. 17. After that there will be 75 percent fewer Cyanotech shares outstanding, however the value of each share will increase fourfold.

In addition to conducting the reverse stock split, Cyanotech said it is eliminating some middle management positions and is taking other steps to retain skilled workers, increase efficiency and reduce costs.

Yesterday, Cyanotech shares closed down 4 cents at 43 cents a share on the Nasdaq SmallCap Market.

Hoku's stock slide can be traced to two events. In February the fuel-cell technology company scaled back revenues projections. Then in May Hoku announced a major change in strategy by unveiling plans to raise $250 million to expand into the solar energy business.

Shares of Hoku yesterday closed at $3.80 a share — that's a 50 percent drop so far this year.

Hawai'i tax coffers have foregone more than $100 million in revenue because of tax credits given to the technology industry. The credits, designed to help diversify the state's tourism-based economy, have gone to companies including Hoku and Cyanotech.

Although Hawai'i only has three public tech companies, more are waiting in the wings, Watumull said.

"Three to four years from now I would expect more companies to go public, but it will take some time," said Watumull.

Future possible candidates for a public offering of stock include Hoana Medical, Tissue Genesis and Hawaii Biotech.

Greg Kim, a partner at Honolulu-based Vantage Counsel, a law-firm catering to startup companies, said establishing a high-tech industry in Hawai'i will take time.

"It's going to take 20 years to build a real industry," Kim said. "So you have to be patient."

Reach Sean Hao at shao@honoluluadvertiser.com.