Interactive entertainment companies publicly traded on NASDAQ are not in immediate jeopardy of losing their status on the stock market
simply because they're trading under $5, but the market will look at each company on a case-by-case basis, a NASDAQ official tells
MMWIRE.
Published reports, claiming Acclaim Entertainment [AKLM] was close to losing its listing on NASDAQ since its stock is below the market's
$5/share minimum, raised flags for the entire industry because a number of other companies fall in the same category (MMW, Jan. 15).
Publishers MicroProse [MPRS] and 3DO [THDO] are both trading under $5, for example. MicroProse and 3DO closed yesterday at 2-1/16
and 2-11/32, respectively.
NASDAQ's $5 minimum takes effect Feb. 23. Companies who fall below the minimum on that day will be sent a letter to that effect, the
NASDAQ official says. The market will set a hearing for each company below the minimum and company officials will make a case for their
companies to remain, the official says. The NASDAQ hearing committee will then meet and issue decisions on the fate of each company and
could issue exceptions for some, he adds.
Meanwhile, Acclaim's stock continued to fall yesterday, after beginning to drop after the published reports surfaced Wednesday. It closed
yesterday at 3-15/16, down 3/16. (NASDAQ, Reid Walker, 202/728-8243)
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