Snowball.com Cuts Workforce as Stock Faces Delisting
The company said it made the reductions to help it achieve cash flow breakeven by year's end.
"We continue to see weakness in the online advertising industry and therefore are taking further actions to reduce our expenses and bring them in line with our revenue expectations," said Mark Jung, CEO of the Brisbane, CA, firm.
Jung said the company is diversifying its revenue streams to include subscription services and advertising programs.
Snowball.com also said it was notified by the Nasdaq that its common stock faces delisting from the Nasdaq national market for failure to comply with its rule requiring a stock to maintain a minimum bid price of $1 per share.
The company's shares closed Wednesday at 50 cents, up a penny from the previous day's close. According to the Nasdaq, its 52-week high is $24.37. Its 52-week low is 19 cents. Its shares last reached $1 on March 13.
Snowball.com said it requested a hearing to review Nasdaq's decision. The stock market will not delist Snowball.com's stock while the hearing is pending. If Nasdaq decides against Snowball.com, its share will be listed on the NASD Over-the-Counter Bulletin Board.