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RealTime IT News

Engage Faces Delisting

It's been a rough week for Engage , the Andover, Mass., provider of online advertising software.

On Tuesday, it abandoned projections of operating profitability by year's end. What's more, Internet investor CMGI offered $11 million for the for 24 percent stake it doesn't already own.

And on Thursday, Engage was notified that its shares are in jeopardy of delisting for failing to meet Nasdaq requirements, including failure to meet the $1 minimum bid price. The issue closed down 0.01, or 5 percent, on Thursday, to 0.2. In the last 52 weeks, the issue has ranged from 0.16 to 1.48.

Engage, based in Andover, Mass., has until June 14 to regain complaince and has requested a hearing with market officials.

"We are taking action in an attempt to rectify this situation, and remain focused on building our position in the Digital Asset Management and Internet Advertising markets," said Christopher Cuddy, president and CEO of Engage.

The likely move is a 1-for-five, 1-for-10 or 1-for-15 reverse stock split. CMGI, also based in Andover, Mass., had approved that plan.

"(The ratio will be) based on (Engage's) determination of which reverse stock split will result in the greatest marketability and liquidity of the company's common stock," the company said.

Engage is among dozens of area technology companies in danger of losing its listing. Most recently, Genuity , the Woburn, Mass., Internet infrastructure giant approved a reverse stock split to raise the value of its shares.

Provant , a Boston provider of Web-based training software and services, also received a delisting notice this week and is appealing.