Troubled gay media company PlanetOut
(NASDAQ:LGBT) continues to face turbulence – the company now faces
possible Nasdaq delisting after failing to meet minimum market value for its stock,
according to a PlanetOut press release.
PlanetOut – the parent company of gay
online market leaders Gay.com and PlanetOut.com – reported last
month that it had an accumulated deficit of nearly $100 million.
Losses have been mounting for PlanetOut
since 2006 when it acquired gay cruise line RSVP. But a little more
than a year later, RSVP found itself being sold off to Atlantis
Events, Inc. for an undisclosed sum. In April the company decided to
sell off its magazine entity to Regent Releasing – the film studio
arm of New York-based GLBT cable channel here! – for $6 million.
Despite these efforts, the company's
stock price lingers at historic lows, closing at $2.50 Monday. The
company has been given 90 calendar days (or until October 30, 2008)
to meet minimum market value.
“PlanetOut intends to monitor the
minimum market value of publicly held shares (as defined by the Rule)
of its common stock between now and October 30, 2008. If its common
stock does not trade at a level that is likely to regain compliance,
PlanetOut's board of directors will consider options available to
PlanetOut, including applying to transfer PlanetOut's securities to
the Nasdaq Capital Market [from the Nasdaq Stock Market],” the