Virgin Mobile. Earlier this week, the company announced job cuts amounting to 10 percent of their workforce. Late yesterday news hit the wires that they have received a notice of non-compliance from the New York Stock Exchange. The company went public just over a year ago, their stock opening at $15.00 and closing its first day at a gain. They’ve tumbled since then, as their stock is now below $1.00. Here’s a tidbit from MarketWatch as to what this non-compliance notice means:
The Company is considered below the applicable standards because the average market capitalization of its Class A common stock and substantial equivalents, including limited partnership interests in Virgin Mobile USA, L.P., its operating partnership, over a period of 30 trading days is less than $100 million. As of November 11, 2008, the Company’s 30 trading-day average market capitalization was approximately $89.8 million. Under NYSE regulations, Virgin Mobile USA has 45 days from receipt of the notice to submit a business plan that demonstrates the Company’s ability to restore compliance with the continued listing criteria within 18 months.Virgin will submit a business plan to explain how they will get above the required valuation. I’m not too familiar with how these procedures work. If anyone is, can you please chime in? I’d like to know how common this kind of thing is, and how companies typically fare afterwards.]]>
Posted in Virgin Mobile