KTEL Delisting: Yes this is true, find it here:
quote.bloomberg.com
K-Tel Faces Delisting by Nasdaq, Says It Will Seek Hearing
K-Tel Faces Delisting by Nasdaq, Says It Will Seek Hearing
Los Angeles, Nov. 17 (Bloomberg) -- K-Tel International Inc. said it's been notified by the Nasdaq stock market that it fails to meet the minimum tangible net asset requirement for trading on the national market and faces delisting.
The Internet music retailer requested a hearing before the Nasdaq listing qualifications panel to obtain a temporary extension to the requirements and a chance to raise additional capital to meet them. ''There is no assurance the company will be successful in its attempt to remain listed on the Nasdaq stock market,'' the company said in its quarterly filing with the Securities and Exchange Commission.
In the first fiscal quarter ended Sept. 30, K-Tel's loss widened to $3.1 million, or 37 cents a share, from $1.2 million, or 15 cents, a year earlier. It had negative cash flow from operations of $4.9 million in the period.
The company said it had $72,742 remaining in a revolving credit line on which it had already borrowed $5.2 million.
The company said ''it expects to be out of compliance with the tangible net requirement (of the credit line) until the company achieves the necessary level of profitable operations, obtains an equity placement infusion or further modifies the covenants.''
It said it had amended some covenants on the credit agreement and had received waivers on others.
Minneapolis-based K-Tel's stock rose 1 to 18 5/8 in mid- morning trading. It had been has high as 21 1/4 earlier.
Last week, the stock soared after Microsoft Corp. agreed to include K-Tel's online music and video service on its MSN Shopping channel.
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Will be difficult to carry forward a short position now?
Chris. |
