Cooking Mama sure can cook. Might want to get her to cook your books, Majesco, as the company today received a formal warning notice from the NASDAQ Stock Exchange. The exchange has rules, and one of those rules is that shares in a company can't trade at under $1.00 for 30 days in a row. Majesco's have been trading at under $1.00 for 30 days now, so they've got this warning, along with a condition that if they can't get it back over $1.00 by February 2009, they might get themselves delisted from the stock exchange. A fate which is probably a lot more awful than it sounds.
Edison, NJ - August 28, 2008 - Majesco Entertainment Company (NASDAQ: COOL), an innovative provider of video games for the family-friendly mass market, announced today that on August 22, 2008, it received a letter from The Nasdaq Stock Market, Inc. ("Nasdaq") notifying the Company that for the 30 consecutive trading days preceding the date of the letter, the bid price of the Company's common stock had closed below the $1.00 per share minimum required for continued inclusion on the Nasdaq Capital Market pursuant to
Nasdaq Marketplace Rule 4310 (c) (4). The letter further notified the Company that, in accordance with Nasdaq Marketplace Rule 4310(c)(8)(D), the Company will be provided 180 calendar days, or until February 18, 2009, to regain compliance with the minimum bid price requirement. Compliance is achieved if the bid price per share of the Company's common stock closes at $1.00 per share or greater for a minimum of ten consecutive trading days prior to February 18, 2009.
If the Company does not achieve compliance within the required period, the Company will be reevaluated to determine whether it meets The Nasdaq Capital Market's initial listing criteria as set forth in Marketplace Rule 4310(c), with the exception of the bid price requirement. If the Company meets the initial listing criteria, which differ from the continued listing criteria, the Nasdaq staff will notify the Company that it has been granted an additional 180 calendar day compliance period. If the Company is not eligible for an additional compliance period, the Nasdaq staff will provide written notification that the Company's securities will be delisted. In that event and at that time, the Company may appeal the Nasdaq staff delisting determination to a Nasdaq Listing Qualifications Panel.