Elephant Talk Warned of Stock Market Delisting
Published on: 24th May 2013
Note -- this news article is more than a year old.
MVNO services provider, Elephant Talk says that it has been warned by the New York Stock Exchange that its financial results could lead to a delisting from the stock exchange.
Elephant Talk says that it has received a non-compliance notice from the NYSE MKT, in that the company has sustained losses which are so substantial in relation to its overall operations, or its existing financial resources, or its financial condition has become so impaired that it appears questionable, in the opinion of the NYSE MKT, as to whether it will be able to continue operations and/or meet its obligations as they mature.
The company has been given until next Thursday to submit a plan of action to turn around the losses. If the plan is not accepted by the stock exchange, then they may delist the company's shares.
"We anticipated receiving this notice and are in continuing discussions with the NYSE MKT regarding the steps necessary to regain compliance," said Steven van der Velden, Chief Executive Officer of the Company. "We strongly believe we have options available and will take the appropriate steps to secure additional capital and regain compliance."
The company has been posting losses, but said in its latest financial statement that it was on the verge of generating positive cash flow in March.