Zoo Entertainment delisted from NASDAQ
IndiePub founder removed from stock market as financial slide continues
Zoo Entertainment was removed from NASDAQ stock listings on November 21, reports today reveal, continuing a rapid financial collapse at the company. As a result, share value had dropped to 70 cents by the end of last week.
A piece on the Cincinnati business blog reports that the publisher, which had been pushing the recently founded IndiePub scheme as a way for small developers to make business headway, has been delisted, severely damaging the company's chances of raising cash.
Previously, Zoo had relied on stock sales to bail it out of financial hot water, but the delisting removes that option. Recently, stock has been used both as a way to pay creditors and also to raise capital for projects.
The company is now trading on an "over-the-counter market known as the OTC QB", which has no financial requirements, the blog reports.
NASDAQ initially warned Zoo of the imminent delisting as long ago as September, highlighting the fact that trading on the marketplace requires at least $2.5 million worth of stockholder credit. Zoo had been operating at a stockholder defecit of $5.2 million.
Just before that warning, in August of this year, a financial report showed a drop of 63 per cent in the company's revenues. Earlier in that month, Zoo's shareholders began a legal case against the company over "materially false and misleading statements" in 2010 which had allegedly seen the company's assets and earning potential vastly over-rated.