LookSmart to be Booted from NASDAQ

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LookSmart to be Booted from NASDAQ

Late yesterday, LookSmart reported that they received a delisting notice from NASDAQ staff on October 13. Stating that shares in the search company had failed to remain above the $1.00 level, NASDAQ began the process of removing LookSmart from its stock-board under MarketPlace Rule 4450(a).

LookSmart is allowed to request an appeal which will delay delisting pending a decision from the NASDAQ Listing Qualifications Panel. In a press release issued by PRNEWSWIRE, LookSmart CEO David Hills said,

“Maintaining our listing on the Nasdaq National Market is an element ofour strategy to return this company to sustainable growth and increase stockholder value. We are taking appropriate measures to maintain our listing through the request for review and the stockholder meeting on a proposed reverse split. We look forward to providing an update on our operational progress on our next earnings call on October 27th.” (click here to read press release)

There are over 113 million outstanding shares of LookSmart. The majority of shareholders would have to give their approval before the reverse stock split could take place.

Jim Hedger, Search Engine News Writer – Jim Hedger is a writer, speaker and search engine marketing expert working for StepForth Search Engine Placement in Victoria BC. He has worked as an SEO for over 5 years and welcomes the opportunity to share his experience through interviews, articles and speaking engagements.

Hedger edits the Stepforth SEO Blog and has contributed content to other publications such as Search Engine Guide and Web Pro News.

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  • Mark L

    Your headline is catchy but a bit irresponsible. They will not be delisted and a little searching by you before serving up that headline would have proved this out.
    A little research would have revealed that have a reverse split in the making that will halt the delisting concerns.
    You might also note Looksmart has signed a few top notch partnerships that make them a decent stock play at the moment.
    NYTimes has adopted their Furl platform, Viacom has taken the entire store of Looksmart goods for use and Barry Diller has licensed the Looksmart ad center.
    I guess old SEO concerns of the old Looksmart will not die easily, too bad.

  • Hunox

    “reverse split” – good one 🙂 Why don’t they just call it “join”!

  • Mark L

    I am not exactly sure what that means Hunox but I am prepared to believe it has something to do with the Looksmart of old.

    This is a new company for all intents and purposes. The CEO stated he has purged the network of the fraudulent traffic that he inherited from the past management. This took place on July 16. The founders are now gone and the company has signed some top level partnerships.
    I suppose the “angry” SEO crowd will be the last group to comprehend and accept it is a new company.
    I find it interesting the off handed, no backhanded remarks made when the company is ever mentioned on an SEM/SEO forum or blog. In fact the headline of this blog post is a perfect example. The Nasdaq is not about to bump LOOK from it’s listed companies. Had the author spent any time on the issue he would have found this to be so.