IndiePub Games parent Zoo Entertainment is at risk of being delisted from the NASDAQ stock exchange after failing to satisfy certain minimum compliance requirements set by the exchange.
IndiePub Games parent Zoo Entertainment (Diamond Trust Of London) is at risk of being delisted from the NASDAQ stock exchange after failing to satisfy certain minimum compliance requirements set by the exchange. As reported by the Cincinnati Business Courier, NASDAQ warned Norwood, Ohio-based Zoo last week that the company doesn't have the minimum $2.5 million in stockholder equity required to stay on the NASDAQ capital markets. Stockholder equity in the company is currently at negative $5.1 million. Zoo has 45 days to submit a plan to NASDAQ outlining its efforts to regain compliance. If that plan is accepted, the company will have until February to implement it. Last week, Zoo posted a sharp, 68 percent decline in second quarter revenues from 2010, contributing to a $10.1 million loss for the period. The company is also the target of a recently filed class-action lawsuit accusing it of intentionally misleading investors with inaccurate income and earnings statements. Zoo Entertainment recently announced plans to transition its publishing business to a purely digital model, after finding profits with family-oriented Wii and DS titles in years past.
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