ArtistDirect will be delisted from the Nasdaq National Market at the end of the week for failing to meet the requirements of the exchange, and will begin trading next week on the over-the-counter bulletin board market for smaller stocks.
The record company and online music portal was cut loose for failing to maintain a minimum stock price and market capitalization, as well as failing to pay its Nasdaq listing fee for the year. ArtistDirect shares sank by 6.4% to end the day at $1.31.
Earlier this year, ArtistDirect posted a loss of $34 million for 2002, compared with losses of $8.7 million for the previous year, owing mainly to costs associated with the startup and development of ArtistDirect Records.
Company warned in March that ArtistDirect Records would need additional funding to cover expenses for the coming year, and that failure to raise more money could result in the sale of the label or the liquidation of the company’s assets.