LOS ANGELES—Finalizing a process that it began in January of last year, The Nasdaq Stock Market LLC has delisted FriendFinder Networks Inc (“FFN”) from trading its common stock on its market, effective today. Company stock will now be traded on the OTCQB Marketplace, also beginning today.
Early last year FriendFinder reported in an 8-K filing, “On January 10, 2012, the Company received a notice of non-compliance from Nasdaq stating that the minimum bid price of its common stock had fallen below $1.00 per share for the last 30 consecutive business days. Nasdaq Rule 5450(a)(1) requires a $1.00 minimum bid for continued listing of an issuer's common stock.”
The company had until July of last year to get back into compliance. “If, at any time prior to July 5, 2012, the market value of the Company's publicly held shares is $15 million or more for a minimum of 10 business days, the Nasdaq staff will provide written notification that the Company has achieved compliance and this matter will be closed,” it reported.
As AVN reported at the time, “FriendFinder Networks' anticipated initial public offering took place in May of this year, when it sold 5,000,000 shares of common stock at a per share value of $10 per share for gross proceeds to FFN of $50,000,000. Within a week of the IPO, shares had fallen by a third to a half of their original value and have not regained their ground since.”
In an announcement by the company issued yesterday, FriendFinder said that it heard from Nasdaq’s Hearing Panel on August 6 that a decision had been reached to delist the company, and added, “As previously disclosed, the Company faced delisting due to its failure to comply with the $1.00 minimum bid price required for continued listing of its common stock under Rule 5450(a)(1) and the minimum market value of its publicly held shares under Rule 5450(b)(2&3)(C).”
It stated, however, that “its common stock will begin trading on the OTCQB Marketplace under the new ticker symbol "FFNT" commencing tomorrow, August 8, 2013. Investors will be able to view real-time best bid and ask quotes for ‘FFNT’ at www.otcmarkets.com.”
FriendFinder added, “The move to OTCQB Marketplace does not change the Company's SEC reporting obligations under applicable securities laws. Accordingly, the Company will continue to file its Quarterly Reports on Form 10-Q, Annual Reports on Form 10-K and Current Reports on Form 8-K. “
For more information about FriendFinder corporate, go here.
