Atari receives yet another delisting threat from Nasdaq after failing to satisfy the qualifications of its last notice.
For the third time in the past two years, publisher Atari, Inc. has received a Staff Determination Letter from the Nasdaq Listing Qualifications Department. This letter threatens that if Atari is unable to comply with the Nasdaq Marketplace Rule 4450, which lists the standards a company must meet to be part of the NASDAQ exchange, then the company will be delisted.
On December 21, 2007, Nasdaq notified Atari that if it was unable to maintain an aggregate market capitalization above $15 million for ten consecutive business days prior to March 20, 2008, that the company could be delisted. Atari failed to fulfill this requirement in the period of time given.
The company will request a hearing with the Nasdaq Listing Qualifications Panel in order to make the case that the company should remain listed in light of the pending acquisition by Infogrames Entertainment of Atari. However, this reasoning does not guarantee that the panel will allow Atari to remain on the market.
Atari’s stock closed at $1.33 per share on Wednesday.