Atari confirms Nasdaq delisting

Ruling should not affect merger with Infogrames

Robert Jaques, vnunet.com 09 May 2008

Atari confirmed today that the Nasdaq Listing Qualifications Panel will delist the video games firm.

As a result, the Nasdaq Global Market will suspend trading of Atari's shares effective at the opening of business on 9 May.

Atari said that it plans to request a review from the Nasdaq Listing and Hearing Review Council, which could alter or dismiss the ruling. However, it added that such a request will not delay the suspension of trading.

The gaming company now expects to be quoted on the Pink Sheets, an electronic quotation service which allows for the continued trading of securities of delisted companies.

The firm's common stock may also be quoted on the OTC Bulletin Board, a regulated quotation service for over-the-counter securities, provided one or more market makers apply to quote Atari's securities.

"As previously announced on December 21 2007, the Nasdaq Listing Qualifications Department notified Atari that, pursuant to Nasdaq Marketplace Rule 4450(e)(1), unless the market value of Atari's publicly held shares (which is calculated by reference to Atari's total shares outstanding, less any shares held by officers, directors or beneficial owners of 10 per cent or more) maintained an aggregate market value of $15m or more for a minimum of 10 consecutive business days prior to March 20, 2008, Atari's securities would be subject to delisting," Atari stated.

The value of Atari Inc's publicly held shares did not reach that level within the required period.

Atari announced on 30 April that it intends to merge with its majority shareholder Infogrames Entertainment, which holds approximately 51.4 per cent of Atari's common shares.

The firm stated that it believes its delisting from Nasdaq will not affect the pending merger transaction.