NASDAQ: Image Shares to be Suspended Christmas Eve18 Dec, 2009 By: Erik Gruenwedel
Image Entertainment Dec. 18 said it has been notified by the staff of the NASDAQ stock market listing qualifications department that its publicly traded shares will be suspended Dec. 24.
The Chatsworth, Calif.-based distributor said it was notified in a Dec. 15 letter by NASDAQ that it had failed to regain compliance in accordance with market rules that mandate a minimum market value of $15 million for 10 consecutive business days for publicly held shares.
Image, which was originally sent the deficiency letter Sept. 15, said it intends to request a hearing to appeal the delisting by Dec. 22.
A hearing would stay the suspension of Image’s common stock. In addition, so long as Image requests a hearing by the deadline, its common stock is expected to continue to be listed on The NASDAQ Global Market, pending conclusion of the appeal process.
Image reiterated there was no assurance the appeal panel would grant its request for continued listing.
Edward Woo, retail analyst with Wedbush Morgan Securities in Los Angeles, said maintaining minimum market valuation is more important than stock price.
“Once a stock gets de-listed, it’s not a big deal because it can always trade over the counter,” Woo said last year when Image’s stock first fell below $1 per share valuation for 10 consecutive business days.
Earlier this week, Image said it did not make a $4 million payment on a senior secured note due Dec. 14, which put the company at risk of filing for Chapter 11 bankruptcy protection.
Image reported a loss of more than $1.6 million in the most recent financial period on revenue of nearly $30 million, a steeper slide than the net loss of $465,000 it reported during the same period in 2008.