K-Tel May Lose Spot on Main Nasdaq Market
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K-Tel International Inc., the music retailer that lately has become a darling of the Internet-related stock sector, has been notified by Nasdaq that it fails to meet minimum tangible asset requirements and may be kicked off the main Nasdaq stock market.
K-Tel received a warning letter from Nasdaq last month. It has a hearing scheduled before Nasdaq in January to try and get an extension in order to raise additional capital to meet the requirements, said Lawrence Kieves, who was named K-Tel president in October.
“There’s no assurance the company will be successful in its attempt to remain listed” on the main Nasdaq market, the company said in a filing with the Securities and Exchange Commission.
The news sent K-Tel stock down $5.63 to close at $12 on Nasdaq.
If delisted from the Nasdaq national market, the Calabasas-based company may apply to the Nasdaq small-cap market, a lower tier of Nasdaq companies.
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