NASDAQ Cautions WPTE May Be Delisted
In a letter to WPT Enterprises, Inc., parent company of the World Poker Tour, received August 14th, the company was warned that it is not in compliance with the minimum stock listing price requirements of the NASDAQ. They face being delisted if a daily closing share price under $1 continues for thirty consecutive business days.
In a statement from the WPTE, “This notification has no effect on the listing of the company’s common stock at this time.”
The WPTE has 180 calendar days to regain compliance. The company will need its common stock to remain above $1 for a minimum of 10 consecutive days to come into compliance.
“The company will continue to execute its business plan to provide an opportunity to demonstrate value to the investment community and regain NASDAQ compliance,” the WPTE said.
The news from NASDAQ comes less than two weeks after the WPTE released an unimpressive revenue report for the second quarter of the year. The company saw a significant drop in its revenue from $7.7 million in the second quarter of 2007 to $5.1 million in the same time period this year.
The WPTE reports that the losses were caused primarily by a drop in domestic television licensing fees, which resulted from lower per-episode license fees under the agreement with GSN compared to the deal with Travel Channel in 2007. Hosting and sponsorship revenues also dipped in the second quarter also contributing to its lower overall numbers.
Despite everything, the company remains confident it can recover. Prior to revealing its second quarter results, the WPTE announced it will be broadcasting the next season of the World Poker Tour after reaching a deal with Fox Sports Network. Its online poker segment of the business has also been disappointing, WPT CEO Steve Lipscomb said they have decided to focus more on the WPTE’s growing sponsorship business instead.
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