Nasdaq on ‘Verge’ of Delisting Drkoop.com
The Nasdaq stock market has informed financially ailing drkoop.com that it is "on the verge" of losing its stock listing because the price has been below $1 for 30 trading days," the AP/Dallas Morning News reports. The stock value has not risen above $1 since Oct. 17 -- closing yesterday at 43.8 cents, a 52-week low. Drkoop.com announced yesterday that it will call a "special meeting of stockholders" to vote on a "reverse stock split" in which share value would be increased by "decreasing the number of shares outstanding" -- moving the stock price over the $1 mark. Drkoop.com CEO Richard Rosenblatt said, "We consider the maintenance of our Nasdaq National Market listing to be very important and intend to take the appropriate steps to ensure that we maintain it." The company went public in 1999 and saw its stock value reach a high of $45. Since then, however, the company has struggled; in August, drkoop.com laid off one-third of its employees. In addition, several stockholders have "sought class-action status" in a lawsuit claiming the company "made false promises when it went public" (AP/Dallas Morning News, 12/7).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.