L90 Says SEC Requested Financial Records; Acquisition Delayed
By Juliann Walsh
Marina del Rey, California, Feb. 4 (Bloomberg) -- L90 Inc. said the Securities and Exchange Commission is investigating its financial records, which will delay the purchase of the Internet- advertising and marketing company by EUniverse Inc.
The SEC issued subpoenas to L90 and one of its directors, requesting documents primarily related to the company's financial records, L90 said in a press release distributed by PR Newswire. The Nasdaq Stock Market also sent L90 a letter requesting information and may be considering delisting the company.
The shares of L90, based in Marina del Rey, California, fell 80 cents, or 39 percent, to $1.25 in early afternoon trading of over 641,000 shares, which is more than double the three-month daily average. Earlier, the shares touched 94 cents. EUniverse fell 70 cents, or 11 percent, to $5.97.
The closing date of EUniverse's acquisition will likely be delayed past Feb. 28, L90 said in the statement. Los Angeles-based EUniverse issued its own statement to say it remains interested in the purchase.
The operator of entertainment Web sites agreed on Jan. 3 to buy L90 for as much as $54.8 million in cash, or $2 to $2.20 a share, which was about a 41 percent premium from L90's closing price the day before.
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