Wednesday, August 13, 2008

PlanetOut Faces NASDAQ Delisting


According to a notice received from NASDAQ, dated Aug. 1, PlanetOut has not maintained the required minimum combined share value of $5 million for the past 30 trading days. The notice stated PlanetOut has until Oct. 30 to regain the minimum value and maintain it for at least 10 consecutive trading days or be delisted from the exchange.

San Francisco-based PlanetOut, which owns websites including Gay.com and PlanetOut.com, said last month that its accumulated deficit had grown to nearly $100 million.

"PlanetOut intends to monitor the minimum market value of publicly held shares of its common stock between now and Oct. 30," the company said in a prepared statement. "If its common stock does not trade at a level that is likely to regain compliance, PlanetOut's board of directors will consider options available to PlanetOut, including applying to transfer PlanetOut's securities to the NASDAQ Capital Market."

In July, PlanetOut revealed it has accumulated debt of nearly $100 million. The company sold its cruise line in 2007, and in April sold magazines Out, The Advocate, The Out Traveler, HIV+, Men, Freshmen, Unzipped and [2] as well as book publisher Alyson Publications to an affiliate of here! Networks for $6 million.

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