Crosswalk.com Demoted to Nasdaq SmallCap
The Chantilly, VA-based stand-alone, a Web destination focused on the Christian market, said yesterday that shares of its common stock have been downgraded to Nasdaq's SmallCap Market. The Nasdaq only allows firms with net tangible assets of more than $4 million to trade on its National Market System.
Crosswalk said it did not feel it would have been in the best interest of its shareholders to take on the dilution that would have been necessary to maintain its NMS listing. However, the company downplayed the importance of the listing change.
"In reality, it doesn't mean that much outside that you'll find our stock listing in a different part of the newspaper," said Gary Struzik, chief financial officer at the firm. "[Financial] institutions don't look at SmallCaps. But then again, most institutions don't look at stocks below $5 anyway, and that's the ballpark we are in."
Crosswalk's stock price hovered around $1.45 yesterday -- a far cry from the day in 1998 when its stock price rose to more than $40.
To increase revenue, Crosswalk.com released an e-mail marketing service that features the firm's opt-in list of 32,000.
The list is a result of an e-mail survey that the firm recently sent to 750,000 registered users, who also were asked to opt in. It can be segmented according to denomination, church involvement, age, gender, income, occupation and location.
Crosswalk.com plans on sending e-mails for companies under its brand. The recipient will receive the message from Crosswalk.com, although the subject line and content can be exclusively from the client. The service offers text and HTML messaging.