WorldSpace In Danger Of Being Delisted
Delisting has been a bit of a hot topic in the satellite radio sector. For Sirius XM, that concern was alleviated because of a rule change by NASDAQ that placed delisting for companies trading under $1 on hold until January 16th of next year.
WordSpace is under $1, but that is not the driver of their potential delisting. Instead, the issue focuses on the fact that WorldSpace has filed for bankruptcy protection, and that the total assets and revenue of the company is below the $50 million dollar level.
NASDAQ has given WorldSpace until November 20th to become compliant. Odds of that happening are quite slim, and thus it would appear that the equity is headed for the pink sheets. Investors in WordSpace should exercise caution going forward, as the equity is becoming thinly traded, and there is a potential delisting about to happen.
Position – Long SIRI, No Position WRSP
What a piece of shit this weinkle or whatever his name is, the only thing worse is that mel is letting it happen, what a discrase to all the investors. He barley has said a word and as far as the money the comany makes , it looks like its enought to refinace the debt but he wants the investors money with a 50 to 1 split. That will pretty much wipe us all out. If that happens the stock will have to over 100 for everyone to get there money back, what croooks. Never saw this coming but now that its here, oh well what the hell and i guess the guys at the top want that kind of thinking right. Wipe out!!!
I wonder if wanker has been down grading them every month!!
Tyler –
Aren’t they going to 0 anyhow by way of file for chapter 11 ?