PopMail Says Subsidiary Breaks Even, but Stock Is Delisted by Nasdaq
On the one hand, the company's wholly owned subsidiary PopMail Network added 12 clients and broke even on a cash flow basis in December. But on the other hand, PopMail.com's stock was delisted from the Nasdaq on Friday for failing to trade above $1 per share for an extended period of time.
The Irving, TX-based company, which operates online fan club sites and offers marketing services to clubs, said its client base generates about $2 million annually, which is enough to support the PopMail Network.
The new clients added in December include the Edmonton Oilers professional hockey team, the U.S. Olympic Committee and the Cleveland Rockers professional women's basketball team. Each client represents about $10,000 in annual revenues, the company said.
Company executives said they intend to generate additional revenues and registrations through cross-marketing deals between clients. With the new clients, the PopMail Network now boasts 100 sports organizations using its opt-in e-mail services.
Meanwhile, the Nasdaq delisted the company from its trading system because its stock failed to trade above $1 per share for an extended period and the company failed to maintain a minimum of two active market makers for 10 consecutive trading days. PopMail.com's stock has been trading below $1 since November. Its shares closed at 44 cents on Monday.
However, the company said on Monday that its stock would begin trading on the OTC Bulletin Board, a trading network affiliated with the Nasdaq.