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World Poker Tour Enterprises May Lose Spot on NASDAQ

Stock Exchange Sent WPTE a Letter Warning of Possibility

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World Poker Tour Enterprises informed its investors yesterday that there’s a chance that the company will lose its listing on NASDAQ thanks to a recent history of its stock trading under $1.

WPTE received a NASDAQ Staff Determination Letter on Aug. 14, informing the company that unless its stock trades above $1 for 10 consecutive days during the next 180 days, it will be delisted from the stock exchange. WPTE got into this situation because its stock has spent 30 days or more trading under NASDAQ’s limit of $1.

The last time WPTE stock closed the day at better than $1 was July 1, when it closed at $1.04.

To avoid delisting, WPTE could perform a reverse stock split, which would cut the number of its offered available stock in half, doubling the value of its remaining shares. Using today’s prices, this would put WPTE at $1.62 and in compliance if it remains higher than a dollar for 10 straight days. This maneuver is usually done by firms to avoid delisting.

In a financial disclosure concerning NASDAQ’s warning, the company gave no signal that it will do this in order to double its stock prices, and company officials did not respond to a request for comment this morning.

If WPTE fails to meet NASDAQ’s listing rules and doesn’t climb and stay above a dollar, it will be booted off of the exchange and its stock will enter the world of Over the Counter (OTC) penny stocks, or Pink Sheets. Its shares will still be available to buy or sell, but serious investors tend to avoid Pink Sheet listings, as they are deemed risky and unstable. 

WPTE went public Aug. 10, 2004, and opened at $9.15 a share. That day, it closed at $6.86. Prices are currently trading at $0.81.