Item
3.01
Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
On March 23, 2010, 4Kids Entertainment, Inc. (the “
Company
”) received written notice from NYSE Regulation, Inc. (“
NYSE
”) that the Company had fallen below the continued listing standards of the New York Stock Exchange, Inc. because over a 30 trading-day period the Company’s total market capitalization was less than $50 million and, at the same time its stockholders’ equity was less than $50 million. As of March 25, 2010, the Company’s 30 trading-day average market capitalization was approximately $17.3 million, with the absolute market capitalization on March 25, 2010 of approximately $15.2 million. The Company’s last reported stockholders’ equity was $35.1 million as of December 31, 2009.
In its notice, the NYSE informed the Company that it is prepared to proceed with its normal business plan procedures, under which
the Company has 45 calendar days from receipt of the notice to submit a plan that demonstrates its ability to achieve compliance with the continued listing standard within 18 months. The Company has notified the NYSE of its intent to submit a plan to remedy its non-compliance. The business plan will be reviewed by the Listings and Compliance Committee of the NYSE (the “
Committee
”). The Committee will either accept the plan, at which time the Company will be subject to quarterly monitoring for compliance with the business plan, or the Committee will not accept the business plan and the Company will be subject to suspension and delisting procedures.
In its letter, the NYSE noted that the Company is at risk of falling below the $15 million minimum average market capitalization threshold which would pre-empt the plan/cure process described above and result in immediate initiation of suspension and delisting procedures, and is also at risk of falling below the $1.00 per share minimum price criteria, where the Company
would be required to bring its share price and average share price back above $1.00 per share by six
months following receipt of the applicable notification.
As required under NYSE rules, the Company issued a press release on March 26, 2010 disclosing that it had received the notice and that the Company intends to submit a plan to attain compliance with the NYSE continued listing standards. A copy of the press release is attached to this Form 8-K as an exhibit.
Item
9.01 Financial Statements, Pro Forma Financial Information and
Exhibits.
(c)
Exhibits
Exhibit
Description
99.1
Press release issued by 4Kids Entertainment, Inc. dated March 26,
2010
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
Date: March 26,
2010
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