Gamasutra: The Art & Business of Making Gamesspacer
View All     RSS
June 25, 2017
arrowPress Releases

If you enjoy reading this site, you might also want to check out these UBM Tech sites:

SouthPeak Delists Itself From New York Stock Exchange
SouthPeak Delists Itself From New York Stock Exchange
September 16, 2011 | By Frank Cifaldi

Two Worlds II publisher SouthPeak Interactive, following a recently-settled investigation with the U.S. Securities and Exchange Commission, has voluntarily pulled itself from the New York Stock Exchange.

According to a mandatory statement filed by SouthPeak, the company "has determined that given its current financial condition and the current state of the economic environment within the industry in which it operates, the benefits of having publicly registered shares and filing periodic reports under the federal securities laws are outweighed by the associated costs."

Though it's not a common practice, companies occasionally delist themselves to be free of costly SEC filing requirements.

The move is sometimes advised to smaller companies as an alternative to going private, as it does not require altering the company's capital structure.

SouthPeak said Thursday it would re-evaluate its delisting "should economic conditions and circumstances change in the future."

The company recently settled with the SEC after an investigation stemming from SouthPeak's failure to properly report and record an early 2009 loan to the company from chairman Terry Philips. It is unknown if its delisting is related.

SouthPeak's third quarter results for the period ending March 31, 2011 showed marked improvements in both revenue and profits versus the same period one year ago. The company does not appear to have filed financial results to the SEC since that time.

Southpeak shares continue to be traded as an 'over the counter' equity.

Without the backing of a large stock exchange the company loses many benefits, including an easy way to use stock options and greater liquidity of its assets, not to mention a prestige factor that attracts further investors.

Related Jobs

Telltale Games
Telltale Games — San Rafael, California, United States

Associate Cinematic Artist
Impulse Gear, Inc.
Impulse Gear, Inc. — San Francisco, California, United States

Lead Concept Art / Look Development Artist
Tangentlemen — Playa Vista, California, United States

AI Engineer
UBM Tech
UBM Tech — San Francisco, California, United States

General Manager, Game Developers Conference

Loading Comments

loader image