Troubled Source Media Inc. said Thursday that it has been delisted from the
NASDAQ National Market System for failure to comply with the exchange's
requirements.
The delisting was effective as of the morning of March 8. Source stock now
trades on the over-the-counter bulletin board under the same symbol, 'SRCM.'
Source stock -- which has traded as high as $18 per share in the past 12
months -- has hovered around the $1 mark for several months. The stock was down
19 cents Thursday, closing at 50 cents per share.
Although Source did not reveal which exchange criteria it did not meet, the
company received notice from NASDAQ in January that it did not meet the
exchange's market-capitalization requirements.
Source provides interactive digital-cable-television applications, localized
new-media advertising and vertical content. So far, however, its main customer
is Insight Communications Co. Inc., which also owns about 6 percent of Source's
stock and warrants for another 18 percent.
Insight president Michael Willner said the Source delisting will have no
effect on his company. He added that the interactive products Insight uses in
its systems are held in a 50-50 joint venture called Source Suite LLC, which is
separate from Source.
'[The delisting] is not a good thing in that the stock is not as easily
tradable,' Willner said. 'Source is working on a plan to deal with its
capitalization issues.'
