Low Youbet.com Stock Price Draws Nasdaq Warning
Updated: Thursday, March 7, 2002 2:54 PM
Posted: Thursday, March 7, 2002 2:54 PM
Youbet.com has been notified by the Nasdaq Stock Market that it isn't in compliance with the $1 a share minimum bid price standard.
On Thursday, the California-based online wagering company said it must have a minimum bid price of at least $1 for 10 consecutive trading days prior to May 15 to meet the requirement. If the company is unable to demonstrate compliance by this date, Nasdaq will seek to delist Youbet.com's shares from the Nasdaq National Market. The company at that time may appeal the delisting.
Youbet.com received the same warning last year around this time and was not able to comply by the May 22, 2001 deadline. The company requested a hearing before the Nasdaq Listing Qualifications Panel, but before the issue was resolved Youbet.com closed a deal with the TV Games Network, which raised the stock above the $1 per share minimum.
The stock has not been equal to or above $1 since Oct. 4 of last year. At the close of business Wednesday, the stock was 67 cents, up 3 cents or 4.7%. The company's shares reached a 52-week high of $1.73 on Sept. 10, 2001 , and a 52-week low of 30 on May 1 .
Youbet.com may apply to transfer its securities to the Nasdaq SmallCap Market if it isn't in compliance by May 15 . If the transfer application is approved, the company will have until Aug. 13 to comply with the minimum bid price requirement.
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