Valley Media Receives Nasdaq Staff Determination23 May, 2001 By: Hive News
Valley Media Inc. on Wednesday said it received a Nasdaq Staff Determination on May 17 that the company fails to comply with the minimum market value of public float requirement for continued listing set forth in Marketplace Rule 4450(a)(2), and that its securities are, therefore, subject to delisting from the Nasdaq National Market.
Further, on March 26, 2001, the company received notification from Nasdaq that it fails to meet the minimum bid price requirement for continued listing also set forth in Marketplace Rule 4450(a)(5) and that the company has until June 25, 2001 to comply with this requirement.
Valley Media has requested a hearing before a Nasdaq Listing Qualifications Panel to review the Staff Determination concerning the minimum market value of public float requirement. According to Nasdaq procedures, the hearing date will be set, to the extent practicable, within 45 days of the request, and the company's stock will continue to trade on The Nasdaq National Market pending the Panel's decision.
There is no assurance that the panel will grant the company's request for continued listing or that the company will be able to timely comply with the various maintenance requirements for continued listing.
The inability to maintain listing of the company's stock on the Nasdaq National Market would likely adversely affect the ability or willingness of investors to purchase the company's stock. In addition, the market liquidity of the company's securities would likely be severely affected.