Late yesterday, LookSmart reported that they received a delisting notice from NASDAQ staff on October 13. Stating that shares in the search company had failed to remain above the $1.00 level, NASDAQ began the process of removing LookSmart from its stock-board under MarketPlace Rule 4450(a).
LookSmart is allowed to request an appeal which will delay delisting pending a decision from the NASDAQ Listing Qualifications Panel. In a press release issued by PRNEWSWIRE, LookSmart CEO David Hills said,
“Maintaining our listing on the Nasdaq National Market is an element ofour strategy to return this company to sustainable growth and increase stockholder value. We are taking appropriate measures to maintain our listing through the request for review and the stockholder meeting on a proposed reverse split. We look forward to providing an update on our operational progress on our next earnings call on October 27th.” (click here to read press release)
There are over 113 million outstanding shares of LookSmart. The majority of shareholders would have to give their approval before the reverse stock split could take place.