Metro Global Media has an Oct. 28 hearing to appeal its suspension from NASDAQ stock composite listing, the company's chief financial officer says.
NASDAQ discontinued listing Metro stock last month when the adult video giant failed to file its 10K report on time. Metro chief financial officer Janet Hoey says the reason involved a tricky acquisition and sale of Fanzine International.
"The changes in independent auditors and the sale of Fanzine were the primary reason for our untimely filing," Hoey says. "The company…is confident it will continue to remain in compliance with the SEC reporting requirements."
The Fanzine situation also caused a quarterly loss for Metro in the period ending Aug. 28. Metro has posted a 12 percent loss over the same period in 1998 despite increased revenues mostly from video and DVD sales.
Hoey says the loss came from interest expense and penalties on borrowing in the Fanzine deal. Metro subsequently sold Fanzine to former shareholders and a company controlled by them for $45 million plus a million shares of Metro common stock held by the former shareholders.
The company will use a substantial slice of Fanzine proceeds to pay down the outstanding debt, Hoey says.
