RLJ Entertainment Receives Delisting Notice27 Apr, 2015 By: Erik Gruenwedel
RLJ Entertainment April 27 disclosed it has received notice from NASDAQ that it will be delisted from the stock exchange if it fails to file its 10-K fiscal filing for the year ended Dec. 31, 2014, in a timely manner.
The fiscally challenged Silver Springs, Md.-based home entertainment distributor received notice from NASDAQ on April 21. RLJE has 60 days to submit a plan to regain compliance. The distributor could be granted up to 180 days from the 10-K's due date to regain compliance.
Earlier this month, RLJE, which owns Acorn Media and Image Entertainment, received $15 million in funds from RLJ namesake Robert L. Johnson. As part of the capital infusion, bond holders agreed to convert 50% of the RLJE’s outstanding long-term debt into convertible preferred stock. They also amended downward the subordinated notes’ interest rate, among other changes.
RLJE cited the fiscal lifeline in part for the delayed 10-K filing. The company said it plans to file its 10-K following certain completed capital structure transaction and year-end audit work.