SAN FRANCISCO - PlanetOut has received notice from the NASDAQ Listing Qualifications Department that PlanetOut shares will be removed from the stock exchange unless the company ups the shares' market value within 90 days.
According to the notice, 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.
Alternatively, PlanetOut may apply to transfer its securities to the NASDAQ Capital Market if PlanetOut satisfies the less-stringent inclusion requirements for that market.
"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.
Since last year, PlanetOut has been working with New York-based financial planner Allen & Company LLC to explore strategic alternatives with respect to its core online businesses, which include the website Gay.com.
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