As Equity Media Holdings Corporation continues to deal with its financial challenges, the company says it has received a notice from Nasdaq that could lead to its stock being dropped from listing on the Nasdaq Capital Market.
“On August 25, 2008, the Company received written notification from NASDAQ that based on the Form 10-Q for the period ended June 30, 2008, Staff determined that the Company’s stockholders’ equity was a deficit of ($7,302,327). In addition, as of August 22, 2008, Staff determined that the market value of listed securities was $17,979,472. Finally, Staff determined that the Company reported net losses from operations in its annual filings for the years ended December 31, 2007, 2006, and 2005 respectively. Accordingly, the Company does not comply with Marketplace Rule 4310(c)(3), which requires the Company to have a minimum of $2,500,000 in stockholders’ equity or $35,000,000 market value of listed securities or $500,000 of net income from continuing operations for the most recently completed fiscal year or two of the three most recently completed fiscal years,” Equity Media said in announcing the Nasdaq notification.
The company has until September 16th to submit a plan to return to compliance. If the Nasdaq staff then rules that the stock should be delisted, Equity Media can appeal that decision to a Listings Qualifications Panel.