PopMail.com Delisted from NASDAQ
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Online marketer PopMail.com has been booted from NASDAQ, following its failure to meet the exchange's listing requirements.
The exchange took action after PopMail's stock traded below $1 for an extended period, and failed to maintain a minimum of two active market makers for 10 consecutive trading days.
"Although we expected the Nasdaq's decision, we are still very confident in the operations and potential of the company's core business of PopMail Network," said PopMail.com chief financial officer Stephen Spohn. PopMail Network is the company's e-mail marketing unit, which specializes in entertainment artists, companies, and venues.
"PopMail Network has demonstrated consistent, strong quarterly growth in both its revenues and client base, and is now turning the corner to profitability," Spohn added. "We are optimistic for continued growth."
The Irving, Texas-based firm received its delisting notice from the NASDAQ on Friday, and began trading on the OTC bulletin board Monday morning.
The company attempted to stave off a last-minute decision by NASDAQ directors to delist the company by announcing Friday that its PopMail Network is breakeven on a cashflow basis. According to spokespeople from the company, the unit generates about $2 million in annualized revenue -- enough to support itself.
Executives also said at the time that they planned to generate additional revenues and member registrations through cross-marketing deals between clients.
The company also recently completed a sizable restructuring that saw the departure of its chief executive and the selling off and discontinuation of its restaurant-operations unit, which the firm said would boost operating revenue.
Nevertheless, PopMail's measures apparently were not enough to convince the investing public or the NASDAQ's Listing Qualifications Panel -- shares of POPM failed to rally Friday, closing unchanged at $0.50.