Both ClickAction Inc. and Engage Inc. have been notified by Nasdaq that they did not meet requirements for continued listing on the National Market System and are subject to delisting.
Both companies said they failed to comply with the $1 minimum bid price required for continued listing.
ClickAction, Palo Alto, CA, plans to apply for stock listing on the Nasdaq SmallCap Market and expects to receive approval on the transfer since the company meets listing requirements for that market, with the exception of minimum bid price, the company said.
“This will allow us to maintain our focus on our core e-mail marketing business and devote our resources to achieving our near term business objectives,” George Grant, ClickActions’ CEO, said in a statement.
ClickAction’s stock price was 71 cents yesterday. The firm reported revenue of $2.1 million for the quarter ended March 31, and a net loss of $1 million.
Engage has requested a hearing before a Nasdaq Listing Qualifications Panel and its common stock will continue to trade on the Nasdaq National Market pending the outcome of the hearing. A date has not been set.
“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,” Engage CEO Christopher Cuddy, said in a statement.
Engage was also notified by Nasdaq that it is not in compliance with the minimum $10 million stockholders’ equity requirement set in marketplace Rule 4450 and that it has until June 14 to regain compliance with this requirement.
CMGI Inc. is the parent of Engage, whose stock price was 20 cents yesterday. Earlier this week, Engage said that it had received a proposal from CMGI to acquire all of the outstanding publicly held shares not already held by CMGI. CMGI owns about 75% of Engage’s outstanding common stock. The offer represents a value of $0.24 per share of Engage common stock, which represents a premium of 20% over the closing price of GMGI and Engage common stock on May 20.
The Andover, MA-firm estimated revenue of between $5.3 million and $5.6 million for the third quarter ended April 30. It estimated a loss of between $7.2 million and $8 million, excluding amortization, restructuring costs and stock compensation. revenue of $6 million and a net loss of $13.2 million for the quarter ended Jan. 31.
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