MobileMedia Corp. delisted its Class A common stock from the Nasdaq National Market June 3 because it cannot meet certain financial reporting requirements of securities laws, which are necessary to list a stock on the Nasdaq exchange, said the company. Nasdaq ceased trading the stock and delisted it immediately following MobileMedia’s request.
MobileMedia’s stock was priced at 50 cents per share when it was delisted.
Company spokeswoman Krista Grossman said MobileMedia “anticipates the stock can be listed with a market maker, on pink sheets.”
Under codes of the Financial Accounting Standards Board, companies are required to write down the carrying value of long-lived assets recorded in their financial statements to the fair value of such assets, said MobileMedia.
A significant portion of MobileMedia’s assets were attained through its acquisitions of Dial Page Inc. and MobileComm and were recorded in the company’s financial statements as long-lived assets.
The company said it “believes the amount of the write-down could be material; however, it is not possible at this time to determine its amount.” As such, the company does not comply with the FASB’s statement of financial accounting standards.
MobileMedia cannot “issue audited financial statements in compliance with generally accepted accounting principles,” said the company. “Consequently, the company will not file its report on Form 10-K or its other periodic reports under the Securities Exchange Act of 1934, as amended.” Accordingly, the company cannot meet Nasdaq’s listing requirements and so requested its common stock be delisted.
When MobileMedia announced last September it was experiencing problems integrating its acquisitions and had violated Federal Communications Commission rules for filing paging applications, the company’s stock plunged from the $6 range to less than $1, where it has remained.
The company’s stock was trading in the $20 range a little more than a year ago.