MKTG Completes Repurchase of Preferred StockMKTG Services Inc. announced the completion yesterday of its repurchase of all outstanding Series E Preferred stock for $6 million in cash and common stock equal to nearly 20 percent of its outstanding common shares.
The company also said it has requested a hearing before a Nasdaq Listing Qualifications Panel to avoid delisting from the Nasdaq Small Cap Market. MKTG has failed to meet the minimum bid price and the stockholders equity requirements for listing on Nasdaq.
MKTG chairman/CEO Jeremy Barbera declined comment.
The company will stay listed pending the outcome of the Nasdaq hearing. It is unclear when the hearing would take place.
In a statement, Barbera said that the preferred stock had a face value of $30 million and that MKTG "has been able to simplify our capital structure and reduce the substantial dilution and overhang associated with the preferred stock."
Since the Dec. 10 sale of its direct marketing operations to privately held CBC Companies for $11 million in cash, plus related liabilities, the publicly traded MKTG consists of a telemarketing and telefundraising division in Los Angeles.
At the time of the sale, Barbera said he would continue as CEO for both the public and private divisions of MKTG and both would stay based in New York. He also said the public company eventually would get a new name.
In late December, MKTG executives Richard Vergara and Jeff Kobil left the company's direct marketing division to open List Data Strategies Group Inc., a list services firm in New York.