4Kids, Blockbuster Face NY Stock Exchange Delisting
posted on by Egan Loo
The New York Stock Exchange warned the licensing company 4Kids and the video rental chain Blockbuster that they face delisting from the New York Stock Exchange because their market capitalization is below the exchange's minimum limit. 4Kids' most recently reported stockholders'equity was US$35.1 million, below US$50 million limit that the stock exchange requires over a 30-trading-day period. 4Kids said on Friday it intends to submit a plan within the required 45 days on how it plans to comply with the stock exchange's requirements for listing.
However, if 4Kids' average market capitalization falls below US$15 million over a 30-trading-day period, the stock exchange's delisting procedure would begin regardless of any plan 4Kids would submit. 4Kids also has to maintain an average closing price of US$1.00 for a share of its stock, and has six months to raise the stock price above US$1.00 after receiving another notice.
As of the close of business on Wednesday, 4Kids' stock stands at US$1.15 with a market capitalization of US$15.35 million.
The stock exchange requires Blockbuster to raise its market capitalization above US$75 million. As of the close of business on Wednesday, Blockbuster's market capitalization is US$52.94 million.