BARCELONA, Spain—In yet another indicator that the downturn in adult entertainment is global in nature, Private Media Group, one of only a handful of adult companies that is publicly traded, said Monday it had received a letter on Sept. 15 from the Nasdaq Stock Market stating that “for the previous 30 consecutive business days, the bid price of the Company's common stock closed below the minimum $1 per share requirement for continued inclusion on The Nasdaq Global Market.”
Private will have 180 calendar days, or until March 15, 2010, to regain compliance with the Minimum Bid Price Rule. In order to regain compliance, the bid price of Private stock must close at $1 per share or more for a minimum of 10 consecutive business days by the above date or Nasdaq will notify the company that its common stock is subject to delisting from the Nasdaq Global Market.
“In the event the Company receives notice that its common stock is subject to delisting from The Nasdaq Global Market,” the press release reads, “Nasdaq rules permit the Company to appeal any delisting determination by the Nasdaq staff to a Nasdaq Hearings Panel.”
At its discretion, Nasdaq also can allow Private to transfer its common stock to the Nasdaq Capital Market if it satisfies the requirements for initial inclusion. If an application for transfer is approved, Private would be given an additional 180 calendar days to comply with the Minimum Bid Price Rule in order to remain on the Nasdaq Capital Market.
“The Company will continue to monitor the bid price for its common stock and consider various options available to it if its common stock does not trade at a level that is likely to regain compliance,” the statement said.