Image stock on delisting warning
Management confident it will meet Nasdaq requirements
By Susanne Ault -- Video Business, 8/6/2008
AUG. 6 | Image Entertainment has been warned that it could be delisted from the Nasdaq Global Stock Market if its shares continue to fail to maintain a minimum market value of $15 million.
The indie supplier can gain compliance if its stock trades at $1.22 or higher per share for 10 consecutive days prior to the Nov. 3 deadline. At the end of trading Wednesday, Image’s share price was $1.15.
If Image can’t improve its valuation, the company plans to transfer its securities to the Nasdaq Capital Market.
However, Image management feels confident it can meet the stock requirements, after working aggressively to turnaround its business with its leadership shakeup earlier this year. Image also has been targeting the rental channel as a new revenue stream.
“As announced on July 9, 2008, we expect to report in excess of $31 million in net revenue for our first fiscal quarter of 2009, the highest net revenue achieved by Image since 2005,” said Jeff Framer, Image’s chief financial officer. “We feel very positive about our growth prospects at this time and are focused on increasing shareholder value.”
Image isn’t the only publicly traded indie supplier with low stock valuation. Genius Products, currently listed on the OTC BB (Over-The-Counter Bulletin Board), ended Wednesday’s trading at 36¢.
