The Nasdaq Stock Market notified executives at Youbet.com on May 16 that the company's stock was not in compliance with a $1 per share minimum standard and was subject to delisting.
The news was not unexpected since the California-based online horse racing wagering company received notification on March 7 that the stock could be removed from the Nasdaq National Market unless it reached at least $1 for 10 consecutive trading days before May 15. Youbet.com stock reached above $1 on only one day in April and one day in May.
Youbet.com has requested a hearing before a Nasdaq Listing Qualifications Panel to review the determination, as it did a year ago when it faced the same situation. Nasdaq won't take any action until the hearing is complete.
"Youbet.com has made tremendous progress over the last 60 days," said David Marshall, chief executive officer of Youbet.com. "Our recent board and management transitions, our co-marketing deals with Churchill Downs and Maryland Jockey Club, our record breaking handle, all show that Youbet is making important strides aimed at increasing the company's strength and viability, and in turn increases the company's value."
Youbet.com has shown some recent improvement. The stock has averaged 92 cents per share since May 1 compared with the month of April when it averaged 74 cents per share.
The Nasdaq Qualifications Panel is not required to grant Youbet.com's a hearing. If the request is denied, the company will move to the Nasdaq SmallCap Market.