Nasdaq puts SoftNet on notice
SoftNet Systems Inc. has been shedding its assets one by one for some time now, and the Nasdaq National Market has taken notice. The company recently received a letter warning that its shares may be delisted. SoftNet is fighting the claim.
Citing the closure of SoftNet's Intelligent Communications Inc. operating unit in April, the staff determination letter contends that the company does not have ongoing operations. As a result, the company does not meet continued listing requirements.
SoftNet has requested a hearing to review the determination. In the meantime, the company's shares will continue to trade pending the outcome of the hearing. The company's shares were down 9 cents, trading at $1.83 as of 10:37 a.m. EDT.
Industry consolidation has weighed on SoftNet's pocketbook for more than a year now. The company began closing some of its subsidiaries at the end of 2000. The first to close its doors was SoftNet's turnkey ISP Channel cable-modem service subsidiary, followed by Aerzone, a wireless-broadband unit that targeted business traveler, and Intellicom, a broadband satellite service provider.
Earlier this month Loral CyberStar said it inked a deal to provide continued service to former broadband satellite customers of Intellicom.