NEW YORK 24/7 Real Media has appealed a Nasdaq ruling that the company's stock is subject to delisting from the SmallCap Market, given that it no longer complies with the $1 minimum bid price requirement for continued listing.
The company's shares (TSFM) were trading on the Nasdaq midday today at 39 cents, down 4 cents or 9.3 percent. Its 52-week high is 65 cents and 52-week low is 14 cents.
The online advertising and technology company said it received a letter from Nasdaq dated May 13, stating that its common stock would be delisted as of the opening of trading tomorrow unless the company requested a hearing to appeal the exchange's ruling by yesterday. Jonathan Hsu, senior vice president of corporate development at 24/7, confirmed that the company submitted a request yesterday.
Under Nasdaq rules, the common stock will continue to trade on the SmallCap Market pending the outcome of the hearing, which will be held within 45 days of the date of the request. At the hearing, 24/7 said it intends to request an extension of the time to raise its share price. If the company was granted an extension, Hsu said 24/7 might consider a reverse stock split.
If the appeal is denied, the company's common stock will be delisted, and will be transferred to the OTC Bulletin Board's electronic quotation system or another quotation system or exchange on which the shares may qualify.
Earlier this month, the New York-based company reported Q1 revenue of $11.8 million, a 10 percent rise from $10.8 million in the year-ago period. First-quarter net loss was $2.3 million, or 4 cents per share, a 38 percent improvement over a net loss of $3.7 million, or 7 cents per share for the same quarter a year ago [IQ Daily Briefing, May 8].