RLJ Entertainment Receives NASDAQ De-Listing Notice15 Jan, 2016 By: Erik Gruenwedel
Home entertainment distributor RLJ Entertainment Jan. 15 disclosed it has been notified by The NASDAQ Stock Market LLC of potential delisting regarding failure to maintain a minimum $1 stock valuation over a 30-day business period.
RLJ Entertainment, which includes Image Entertainment and Acorn Media Group, has 180 business days to restore the $1 share price and maintain it for 10 consecutive business days to regain compliance. If RLJ Entertainment fails to regain compliance after the second 180-day grace period, its common stock would be subject to delisting by NASDAQ.
The distributor reported a loss of $8.2 million on revenue of $32.5 million during its most-recent fiscal period. Revenue from direct-to-consumer businesses, which include Acorn TV, the Urban Movie Channel (UMC) and e-commerce catalog, increased $2.5 million, or 39%, compared with the third quarter of 2014.
Acorn TV ended the period with 180,000 paid subscribers, an increase of more than 60,000 year-over-year.