NEW YORK: Medialink, the originator of the video news release, has been put on notice by NASDAQ. The company said it received a letter from the stock exchange on Aug. 4 warning it of delisting. Medialink (NASDAQ: MDLK) was initially notified April 20 that its stockholder equity was below the minimum necessary to maintain its listing. It was granted a 105-day extension to regain compliance. The extension ended Aug. 3. Medialink had not bounced back. A hearing on the matter is scheduled for today, and if the NASDAQ panel boots MDLK, its stock will likely end up trading on the Pink Sheets or OTCBB. Medialink shares have traded for a month at around 20 cents.
The company is in the process of being acquired by The NewsMarket, a similar marketing business based in New York. TheNewsMarket agreed July 1 to take Medialink for 20 cents a share cash on cancellation of the common stock. A subsequent complaint filed by creditors has been resolved, clearing the way for the acquisition, according to PR Week. The merger is subject to stockholder approval; a vote is scheduled for September.
-- Deborah D. McAdams
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