Tix Corp., the exhibition and Las Vegas discount ticket company, has had its stock delisted by NASDAQ because it was selling for less than the $1 per share minimum the trading exchange requires.
The development is not much of a surprise for Tix Corp., partly because of the economy and partly the company’s efforts over the years to resuscitate the slumping stock, which trades under the symbol TIXC, largely have not born fruit.
In recent years, the company has made some acquisitions, such as Magic Arts and Entertainment and AnyEvent.com, but was banking on a patent application it filed for a ticketing distribution system to kick start its fortunes.
However, last month, the company announced it had retained the investment bank B. Riley & Co. to explore “strategic alternatives,” including the possible sale of Magic Arts and Entertainment as part of shedding the company’s live entertainment assets.
The stock closed at $0.62 on October 1, and was trading at $0.58 at about 3 p.m. EDT today, October 4. According to NASDAQ, publicly traded companies on its exchange must meet certain criteria, in addition to a company’s share price being $1 or more. Among the other requirements, the company’s outstanding publicly held shares must total or exceed at least 750,000 (or 1.1 million in some instances) and the market value of those shares must reach or exceed $5 million (or $15 million in some instances). Tix Corp.’s market capitalization is more than $18 million, as of today.
While the delisting is a setback for the company, in a September 28 filing with the Securities and Exchange Commission, Tix Corp. said it would “move its common stock listing to the OTCQX U.S. Premier (OTCQX) over-the-counter market,” which is operated by Pink OTC Markets Inc.
Tix Corp.’s last day of trading on NASDAQ is expected to be October 26, and it should begin trading on OTCQX by October 29.
“We’re taking this important step with our shareholders’ interests in mind,” Tix Corp. Chairman and CEO Mitch Francis said in a statement. “The burden of reporting under the Exchange Act, and in recent years the added burden of Sarbanes-Oxley, has become too expensive for many small companies such as Tix Corporation. After careful consideration, the Company believes that by moving its stock listing to the OTCQX and deregistering its common stock, it can re-invest significant resources to help drive growth and profitability. We believe that by utilizing the OTCQX platform, material savings can be achieved while still providing reliable information to our shareholders.”