El Sitio heading towards Nasdaq delisting
MIAMI — The Securities and Exchange Commission has declared effective the planned merger of Internet company El Sitio and Hicks Muse-Cisneros Group joint venture Ibero-American Media Partners to form Claxson Interactive Group.
A final shareholder vote, the last step before the merger is completed, is scheduled for Sept. 7.
Claxson will be comprised of El Sitio, pay TV programmer Cisneros TV Group, Chilean broadcaster Chilevision, Radio Chile and some Caribbean holdings.
Nasdaq, however, informed El Sitio on Aug. 15 that the company’s stock failed to meet a minimum bid price for continued listing and would be subject to delisting effective Thursday.
El Sitio plans to appeal the ruling. Its shareholders approved a 1-for-10 reverse stock split on Aug. 8, a move apparently designed to prevent the delisting of the stock, which has traded for less than $1 for several months.