Shares dip under a dollar, co. to appeal decision
In another slap in the face for American Online, AOL Latin America said Friday it has received a delisting notice from the Nasdaq for failing to meet the exchange’s requirement of $35 million in market capitalization.
Company, owned by AOL Time Warner and the Cisneros Group, will appeal the decision, and expects a final resolution in 30-60 days.
AOL Latin America chief executive Charles Herington said cash in hand plus funds available under a financing agreement with AOL TW will be sufficient to fund operations into early next year.
“We remain committed to our shareholders and to maintaining our position as a leading ISP in Latin America,” Herington said.
Shares dipped under a dollar this year, down from more than $6 at their 52-week high — tracking a sharp downturn in the stock of parent AOL TW. AOL Latin America shares closed at 39¢ Friday, up 8.33%, for a market cap of about $28 million. Parent AOL TW shares fell 3.14% to $12.65.
AOL Time Warner has been rocked by troubles at America Online, where subscriber growth has slowed, due in part to a choppy rollout of its high-speed Internet service. The Securities and Exchange Commission and the Justice Dept. are investigating alleged accounting irregularities at America Online.
Pending its appeal, AOL Latin America will continue to trade on the Nasdaq. If delisted, it expects to trade on the Over-the-Counter Bulletin Board (OTCCB).