Acclaim faces NASDAQ delisting
Trading under two bits a share, Acclaim needs to increase market value or face being moved to OTC status.
What can you get for a quarter these days? On Wall Street, not much. It will, however, buy you a share of stock in Acclaim Entertainment. The company's stock closed at 19 cents at the end of trading on Thursday.
But such a bargain-basement valuation has put the publisher in a precarious position. The publisher announced today that it has been served with documents from NASDAQ regulators indicating that if the market value of the company did not increase by August 18, it risked being delisted from trading for noncompliance with NASDAQ marketplace rules. If it were to be delisted, trading of Acclaim stock would likely shift to the OTC (over the counter) Bulletin Board.
According to Acclaim, "The calculation of the market value of the Company's listed securities was based upon 129,573,500 shares of common stock outstanding as of June 19, 2004 multiplied by a closing bid price on that date of $0.20 per share."
The statement goes on to say that for Acclaim to remain a NASDAQ-listed company, the market value of the company must rise above $35 million for a minimum of 10 consecutive business days prior to August 18. In Acclaim's case, that means shares of the company's common stock must close at or above $.28 for the period outlined.
If the company were to be delisted, it would retain the right to appeal the decision.
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