iVillage.com (Nasdaq: IVIL) will remain on the same “street” as its tech stock neighborsafter all. The women’s site announced Friday that it will not be kicked off the Nasdaq stock exchange.
The women’s online network said it has received a letter from Nasdaq stating that iVillage has met listing rules by maintaining a minimum bidprice of US$1 for at least 10 consecutive trading days.
“We are pleased with this Nasdaq action and that the issue of delisting is now closed,” said iVillage chairman and chief executive officer Doug McCormick. “We continue with our focus on achieving profitability,increasing shareholder value and strengthening our position as a leadingwomen’s media company.”
Steady and Rising
According to iVillage, it received its first Nasdaq warning on April 20th. In that letter, the Nasdaq informed iVillage that its common stock had failed tomaintain a minimum bid price of $1 for 30 consecutive trading days, asrequired.
Nasdaq gave iVillage until July 19th (90 calendar days) to regaincompliance. The exchange said that if at any time before July 19th the closing bid price of iVillage’s common stock reached at least $1 for a minimum of 10 consecutive trading days,Nasdaq would reevaluate the company’s compliance.
iVillage shares climbed back over the $1 mark on April 25th and the stockclosed up 23 cents Friday at $1.66.
The iVillage Network includes iVillage.com, Lamaze Publishing and theNewborn Channel. Additionally, iVillage shareholders are due to meet June 15th to vote on a pending acquisition of rival site Women.com.
The potential deal with Women.com includes a $20 million investment from the Hearst Corporation,as well as an agreement by Hearst to buy $15 to $21 million in advertising and production services over the next three years.
iVillage said in April that with the acquisition of Women.com, iVillage will be well-positioned to remain a competitive Internet player. iVillage also said at the time that its stock price was not an accuratereflection of the company’s cash value.
The early months of 2001 were marked by actual and potential dot-com delistings. A Nasdaqdelisting has already been the last strike against several e-commerce companies,including Garden.com and Pets.com.
Another company that stared a Nasdaq dagger in the face and lived to tellthe tale is Beyond.com (Nasdaq: BYND), which builds and manages onlinestores for businesses. The company has twice escaped delisting.
Last year, Beyond.com noteholders exchanged their securities for new ones in order to help thecompany meet Nasdaq’s requirement of $4 million in assets. Last month, the Nasdaq informed Beyond.com that it could continue to trade, as long as it has a closing bid price of at least $1 per share on or before July 3rd and maintains it for 10 days.
In January, Webvan (Nasdaq: WBVN) also received a failure-to-comply notice from Nasdaq. Webvan stock has not reached the $1 mark since last November and has been selling off assets originally meant for a West Coast expansion.