Nasdaq notified publisher Majesco Entertainment that the company could be delisted from the stock exchange, as its stock has, for the past 30 consecutive trading days, closed below the $1.00-per-share minimum required for continued inclusion.
According to Nasdaq's marketplace rules, Majesco has 180 days, or until February 18, 2009, to regain compliance by having its stock close above $1.00 per share and meet the minimum price requirement for ten consecutive trading days.
If the Edison, New Jersey-based company is unable to achieve compliance within that period, Nasdaq will reevaluate Majesco to determine whether it meets its initial listing criteria. Provided that it meets those criteria, Majesco will be eligible for an additional 180 calendar day compliance period.
The company previously faced delisting from the stock exchange in 2007 after not complying with the 10 consecutive business day $35 million market cap requirement. Majesco was able to eventually regain compliance
with Nasdaq by maintaining a market value of listed securities of at least $35 million for ten consecutive trading days.
Majesco also recently reported decreased earnings for the second quarter of 2008 ending April 30, with sales at $12.8 million compared to $14.6 million in Q2 2007. The company blamed the dip on the release of Cooking Mama: Cook Off
and Bust-a-Move Bash!
during the second quarter in the previous year.
Majesco's sales for the first half of 2008 were up, however, totaling $31.4 million compared to $29.1 million in the first half of 2007.