Financially-afflicted game publisher and IndiePub parent Zoo Entertainment has taken a huge financial blow, as the company's stock has been delisted from the NASDAQ stock exchange.
In September, NASDAQ warned the Ohio-based company
that it could not stay on the stock listings unless it met a minimum of $2.5 million in stockholder equity -- at the time, the company was situated at negative $5.1 million. NASDAQ held true to its warning, and removed Zoo from its listings on November 21.
This delisting spells bad news for Zoo Entertainment, as selling stock was one of the key ways in which it raised capital. In July 2010, for instance, Zoo sold stock at $6 per share to earn $7.6 million, and in July 2011 it sold stock at $1.96 per share to raise $1.6 million, reports the Cincinnati Business Courier
The company's financial woes don't stop there. In October, Zoo Entertainment received a notice of default
from Panta Distribution over $1.17 million it owed under a June agreement.
For its fiscal second quarter ended June 30, Zoo Entertainment lost more than $10 million
, which CEO Mark Seremet attributed to the company's eventual transition from budget console releases to a fully digital model
In addition, Zoo is also the target of a class-action lawsuit
accusing the company of issuing "materially false and misleading statements" to investors.
In September, Zoo announced the development of its IndiePub publishing platform
, which aims to help independent developers release and sell their iOS, Android, Windows, Mac, and Flash titles.