After what feels like years of threats, Atari have finally been handed a delisting notice from the Nasdaq stock exchange, after the company failed to raise the $US 15 million in market capitalisation it needed to stay the executioner's axe. An appeal's already been lodged, citing parent company Infogrames offer of a total buyout, but, yeah. Things don't look good. Guess Misseur Directeur Général Délégué has his work cut out for him. Those with a morbid fascination for death rattles can read Atari's full statement after the jump.
NEW YORK, March 26 /PRNewswire-FirstCall/ — Atari, Inc. (Nasdaq: ATAR), an interactive entertainment company, announced today that on March 24, 2008 it received a Staff Determination Letter from the Nasdaq Listing Qualifications Department stating that Atari, Inc. has not gained compliance with the requirements of Nasdaq Marketplace Rule 4450(b)(3), and that its securities are therefore subject to delisting from The Nasdaq Global Market.
As previously announced, on December 21, 2007, the Nasdaq Listing Qualifications Department notified Atari, Inc. that, pursuant to Nasdaq Marketplace Rule 4450(e)(1), unless the market value of Atari, Inc.'s publicly held shares (which is calculated by reference to Atari, Inc.'s total shares outstanding, less any shares held by officers, directors or beneficial owners of 10% or more) maintains an aggregate market value of $15.0 million or more for a minimum of 10 consecutive business days prior to March 20, 2008, Atari, Inc.'s securities would be subject to delisting. The value of Atari, Inc.'s publicly held shares did not reach that level within the required period. Atari, Inc. intends to request a hearing before a Nasdaq Listing Qualifications Panel in order to appeal the Nasdaq Staff's determination in light of, among other things, the pending proposal by Infogrames Entertainment SA (IESA) to acquire all of the outstanding shares of common stock not held by IESA. The hearing request will stay the delisting and, as a result, Atari, Inc.'s securities will remain listed on The Nasdaq Global Market until the Panel issues its decision following the hearing. There can be no assurance that the Panel will grant Atari, Inc.'s request for continued listing on The Nasdaq Global Market.