Troubled publisher Atari (The Witcher) has announced that it has been warned by the NASDAQ stock market over minimum share value, with a possible delisting in March 2008 if the firm can't show that its public shares are worth more than $15 million.
The company, which has systematically sold off its licenses and development studios over the past several years, continues to struggle, partly thanks to long-term debts and restructuring at parent company Infogrames.
Most recently, Atari announced earlier in December that it had settled its Dragon Ball Z license dispute with anime distributor FUNimation for $3.5 million, also announcing that it has borrowed $4 million from investment company BlueBay, in addition to the $10 million in credit it secured in October, "to meet its holiday season financing needs."
In addition, the company's latest financial results showed sales down to $13.3 million, and net losses of $7.7 million, significantly higher than the prior year's $68,000, and with no clear improvement in sight.
The full statement regarding the possible NASDAQ delisting reads as follows:
"Atari, Inc. has 90 calendar days, or until March 20, 2008, to regain compliance with the minimum market value of Atari, Inc.'s publicly held shares required for continued listing on the Nasdaq Global Market, as set forth in Nasdaq Marketplace Rule 4450(b)(3). Atari, Inc. received this notice because the market value of its publicly held shares (which is calculated by reference to Atari, Inc.'s total shares outstanding, less any shares held by officers, directors or beneficial owners of 10% or more) was less than $15.0 million for 30 consecutive business days prior to December 21, 2007."
"The notice letter also states that if, at any time before March 20, 2008, the market value of Atari, Inc.'s publicly held shares is $15.0 million or more for a minimum of 10 consecutive trading days, the Nasdaq staff will provide Atari, Inc. with written notification that it has achieved compliance with the minimum market value of publicly held shares rule. However, the notice states that if Atari, Inc. cannot demonstrate compliance with such rule by March 20, 2008, the Nasdaq staff will provide Atari, Inc. with written notification that its common stock will be delisted." The company is permitted to appeal the decision.
