Rediff.com announced that it is delisting its shares from the Nasdaq Capital Markets. Rediff’s shares will now be traded on the over-the-counter marketplace following delisting and deregistration. The quarter ended March 2016 will be the last financial results the company will be posting on the stock exchange.
The company said that the reasons for its withdrawal from listing and registration relate to the cost of filing periodic reports with the Securities and Exchange Commission and meeting other applicable regulatory requirements.
” The current economic climate has not only impacted the capital markets, but the digital advertising industry as well. As such, we are constantly looking for ways to reduce costs and increase shareholder value as we continue to focus our efforts on growing the core business and leveraging our comprehensive on-line offerings,” CEO Ajit Balakrishnan said in a statement.
On February 3, 2016 Rediff received a letter from Nasdaq which said that for the previous 30 consecutive business days, the bid price for Rediff’s American Depository Shares (ADSs) closed below the minimum $1 per ADS requirement for continued listing on the Nasdaq Capital Market.
The company’s stock opened on Nasdaq’s Global Market at $23.25 per share. The company’s highest stock price was at its highest in $26.45 in March 2006.
Earlier in August 2015, Rediff moved its stocks from the Nasdaq Global Market to the smaller Nasdaq Capital Market as it did not meet the stock market’s minimum equity level for continued listing on the Global Market.
Total revenues for the company decreased 8% to $3.63 million from $3.96 million in the same quarter last year. Indian online revenues was at $3.15 million, down 5.97% from $3.35 million in the same quarter last year. However, the operating expenses were down 9.52% year-on-year (YoY) to $2.85 million from $3.15 million in the same quarter last year.
Marketplace fee revenue as a share of total revenues grew to 31%, compared to 24% in the corresponding quarter last year.
Net loss for Rediff for the quarter was $1.86 million compared to net loss of $2.37 million in the same quarter last year.
Rediff’s notice to Nasdaq
April 27, 2016
805 King Farm Blvd.
Rockville, MD 20850
Re: Rediff.com India Limited
To whom it may concern:
This is to notify you pursuant to Rule 12d2-2(c)(2) of the Securities and Exchange Act of 1934 (the “Act”) and Nasdaq Marketplace Rule 5840(j), that Rediff.com India Limited (the “Company”) intends to file an application on Form 25 to notify the Securities and Exchange Commission of the Company’s withdrawal of its American Depository Shares from listing on the Nasdaq Capital Market, and the Company’s intention to withdraw such shares from registration under Section 12(b) of the Act.
Please be further advised of the following material facts relating to the reasons for the withdrawal from listing and registration:
- The cost of filing periodic reports with the SEC pursuant to the Act and meeting other applicable regulatory requirements is prohibitive for the Company in light of its current financial position.
- The Company believes that it is in the best interests of its shareholders to significantly reduce expenses by ceasing to be a reporting company, and that the cost savings realized outweigh the benefits of being a reporting company.
- On February 3, 2016, the Company received notice from NASDAQ that it has failed to satisfy the minimum bid price requirement of $1.00 per share continued listing standard (Listing Rule 5550(a)(2)).
- The Company believes that it may be difficult and expensive to try to regain compliance with the Nasdaq continued listing requirements, and therefore has determined to voluntarily delist from Nasdaq.
- The Company has not, and does not intend to at this time, arrange for listing, registration or quotation on another national securities exchange or quotation medium.
Please let me know should you require any additional information.
Very truly yours,
Chief Financial Officer