Nasdaq to delist AOL Latin subsid

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).

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Biz News from Variety

Loading