Saturday, January 24, 2009

Virgin Mobile USA Plan of Compliance Accepted by NYSE

Virgin Mobile USA, once touted as the shinning star of the MVNO industry, fell below the $1 a share mark back in December and as a result received notice from the NYSE that it would be delisted for failing to meet the minimum requirement of a share price of $1. In order to remain listed, Virgin submitted a plan of compliance to the NYSE on Demeber 24th.

Just this past week the NYSE had announced that it had accepted Virgin Mobile's plan and that they would receive until May of this year to bring their stock price back above the $1 a share mark. Their shares have been hovering around $0.80 since the beginning of the year but the 4th quarter earnings will be released on March 3rd and that should give an indication if they will be able to remain a publicly traded company or not!

If Virgin should for some reason end up being delisted, it is by no means an end for the company but it will be tough for Virgin to continue to operate at the levels they had been in years past. They have already implemented staff reductions and will no doubt have to continue to cut back if they can't remain listed.

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