Nasdaq Gives Image Three-Month Extension21 Oct, 2008 By: Erik Gruenwedel
Nasdaq granted Image Entertainment a 90-day extension (to Feb. 9, 2009) to upgrade its market value.
The previous deadline was Nov. 3.
Nasdaq rules require that all publicly traded companies maintain a minimum market value of $15 million. Market capitalization (“market cap”) is typically the number of shares outstanding times the price per share.
The trading board Oct. 21 said it would relax financial requirements to prevent companies whose share price had fallen below $1 from being re-classified as penny stocks.
Nasdaq reported that 227 securities were penny stocks, up from 64 during the previous year period. The tally increased to 344 by Oct. 9.
“There is so much uncertainty in the equity markets right now for so many companies, that focusing short-term on that rule is just the wrong focus," Magnus Bocker, Nasdaq's president, told Reuters.
Image received its initial warning Aug. 6, and stated at the time it would consider moving its securities to The Nasdaq Capital Market (formerly known as the Nasdaq SmallCap Market), which requires smaller market valuations.
Chatsworth, Calif.-based Image closed Oct. 21 with a market cap of $15.3 million.
Image earlier this month said it projected second-quarter fiscal year 2009 (ended Sept. 30) revenue to exceed $31 million, compared to $21.6 million during the previous-year period.
The distributor said it expected net revenue for FY 2009 to range from $115 million to $125 million. It also expected to post an undisclosed profit.