comScore said that it told Nasdaq that the company will not be able to meet requirements for reporting its financial data by the Feb. 23 deadline set by Nasdaq’s hearing panel and could be delisted.
The news sent comScore stock lower, diving 21% to $25.49 in morning trading Monday.
comScore has been working to restate its financial statement since an investigation showed that it did not properly account for certain non-monetary transactions during 2013-16.
comScore was granted a conditional listing on Nasdaq through Feb. 23 to give it time to complete the restatements and regain compliance with Nasdaq’s listing requirements.
The company said it has made “significant progress” but won’t be done by the deadline.
If it gets delisted by Nasdaq, comScore said it would appeal. Its stock would be quoted on OTC markets until it is in compliance with SEC reporting obligations. At that point, the company would seek relisting on a major exchange.
Since the investigation was disclosed, many top comScore executives have left the company, including former CEO Serge Matta.
"Although we are disappointed that we will not meet Nasdaq's deadline, we have made significant progress towards the restatement and in strengthening our internal audit and compliance functions. Furthermore, our business fundamentals continue to be strong, underscored by our healthy balance sheet with $116 million in cash,” said cofounder and CEO Gian Fulgoni. “We are confident in our strategy, our roadmap for innovation, our unique data and technology assets, and in the value we deliver to more than 3,000 clients, all of which we believe will drive long-term growth for our company."
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