Atari Inc., a subsidiary of Infogrames, announced that it had received a letter from the NASDAQ listing qualifications department stating that it had not gained compliance with the market's requirements.
Its securities are therefore subject to delisting.
Atari Inc. has been threatened numerous times with delisting by NASDAQ for failing to file annual reports on time and for the declining value of the company.
The most recent deadline for complying with NASDAQ requirements - having the company's value reach or exceed USD 15 million for ten consecutive days - was March 20, 2008. The value of Atari Inc.'s publicly held shares did not reach that level within the allotted time.
Atari Inc. says that it intends to request a hearing before a NASDAQ panel in order to appeal the determination - especially in light of the proposal by Infogrames to acquire all of the remaining outstanding shares of its common stock.
However, Atari Inc. said that there is no assurance that the panel will grant its request for continued listing.