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Consistently Low Stock Price the Apparent Cause
August 20, 2008 (InfoPowa News) — The tough time that World Poker Tour Enterprises Inc is currently going through could have repercussions in terms of the firm’s NASDAQ listing; if a daily closing share price under $1 continues to be experienced over thirty consecutive business days, the American exchange can force a delisting.
WPT announced this week that it had received a NASDAQ Staff Determination Letter on August 14 warning the company that it is not in compliance with the minimum stock listing price requirements.
“This notification has no effect on the listing of the company’s common stock at this time,” WPTE emphasized in a press release.
WPTE has 180 calendar days to regain compliance, which means that its common stock must remain above $1 for a minimum of 10 consecutive days.
“The company will continue to execute its business plan to provide an opportunity to demonstrate value to the investment community and regain NASDAQ compliance,” the WPTE statement advised.
Earlier this month the company released a disappointing revenue report for the second quarter of the year. The company saw another drop in its revenue from $7.7 million in the second quarter of 2007 to $5.1 million in the same period this year.
According to the WPTE, the losses were primarily a result of a drop in domestic television licensing fees, which resulted from lower per-episode license fees under the GSN agreement compared to the previous Travel Channel deal in 2007, together with a decline in hosting and sponsorship revenues. The company has also struggled with its online poker operations following software changes.
