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Ventro (Nasdaq: VNTR) fell 9 U.S. cents to 84 cents in morning trading Thursday, after the company, which builds and operates online marketplaces for businesses, said that it may be delisted from the Nasdaq.
A year ago, Ventro shares traded at $140.
The Mountain View, California-based company said its tangible assets no longer meet the $4 million minimum required by the Nasdaq.
Ventro said that there is a "substantial probability" it will remain out of compliance with Nasdaq standards and will see its stock kicked off the National Market System.
"Any such delisting would have an adverse effect on the liquidity of the company's common stock and the shareholders' ability to sell their common stock," Ventro said.
Ventro is offering to repurchase all its outstanding 6 percent convertible subordinated notes due in 2007. The offer, which would give noteholders $270 for each $1,000 of notes, is set to expire Friday.
The repurchase, depending on the amount of notes tendered, could result in a "significant gain" for the company, and "together with other factors," bring its assets up to the Nasdaq minimum, Ventro said.
Ventro said that a group of bondholders wants the company to improve the terms of its offer. Management, however, "currently does not intend to change the terms of the offer and does intend to let the offer expire on schedule," Ventro said.
Ventro provides technology and services to business-to-business (B2B)
marketplaces. The company posted a loss of $451.6 million, or $9.93 per
share, for the fourth quarter ended December 31st.
