RLJ Entertainment Given Nasdaq Delisting Notice27 Apr, 2016 By: Erik Gruenwedel
RLJ Entertainment April 27 disclosed it received notice from Nasdaq stating the distributor does not currently meet the required minimum of $2.5 million in stockholders’ equity needed for continued listing on the stock exchange.
RLJ Entertainment, which includes Image Entertainment and Acorn Media Group, has until June 5 to submit a plan to regain compliance. If the submitted plan is accepted, an extension of up to 180 days may be granted, or until Oct. 18, to regain compliance.
In a filing, RLJ Entertainment CEO Miguel Penella said the distributor is developing a plan that it intends to submit to maintain its listing. The notification letter does not result in any immediate disruption of the company’s common stock trading, and the stock will continue to trade uninterrupted.
The distributor reported a 2015 loss of $54.9 million — up 159% from a loss of $21.2 million during the previous-year period. Revenue declined nearly 10% to $124.9 million from $137.6 million.
RLJE shares closed at 59 cents per share. The distributor has market capitalization of $8.35 million.