WorldSpace Shuffles Stock To Avoid NASDAQ Delisting
August 31, 2006 at 6:47 AM (PT)
WORLDSPACE SATELLITE RADIO announced WEDNESDAY that NASDAQ has issued a Staff Deficiency Letter telling the company that it is not in compliance with the stock exchange's minimum $50 million market value. WORLDSPACE's value as of AUGUST 23 dipped to $47,804,046 at its closing price of $2.24 per share.
The company has worked a deal with its largest shareholder YENURA PTE. LTD., like WORLDSPACE controlled by CEO NOAH SAMARA, in which YENURA is trading its Class B shares for Class A shares, increasing the number of Class A shares outstanding from 21,341,092 to 38,767,535. The move is designed to increase the marker value of the company above NASDAQ's delisting level and forestall further action by the exchange.