After Falling 90% In 3 Mos., Dolan’s Stock Is Delisted
After its stock fell more than 90 percent in the last three months, Minneapolis-based Dolan Company announced recently that it has been booted off the New York Stock Exchange (NYSE).
Dolan—which provides professional services and business information to the legal, financial, and real estate industries—was warned in January that if it didn’t maintain an average closing price of at least $1 per share over 30 consecutive trading days, it would be delisted.
The company’s stock fell below $1 in November, shortly after it took a huge dive on news that Dolan’s third-quarter revenue dropped by 20 percent.
Dolan said it now expects to commence trading its stock on an “over-the-counter” market called OTCQB. The company will change its symbol from “DOLN” to “DOLNP” for the new market.
The OTCQB marketplace features more than 3,100 securities for U.S. companies, which are subject to regulatory reporting requirements but don’t have minimum requirements like Nasdaq or the NYSE.
Two other large Minnesota companies, Plymouth-based Urologix and St. Louis Park-based Granite City Food & Brewery made similar transitions after being delisted in 2013. While both of those companies have seen their stock prices decline since the shift, Granite City Food was able to increase its revenue after the delisting whereas Urologix has not.
Since moving to the OTCQB exchange, Urologix has dropped more than 60 percent and was trading down an additional 14 percent at $0.15 Thursday morning.
Granite City Food’s stock has fallen about 40 percent since being delisted and was trading at $1.20 per share Thursday morning. Granite City’s stock didn’t immediately drop after its delisting, however; instead, it fell 30 percent a couple months afterward, when it announced it may deregister its shares altogether.
Dolan’s stock was trading down 9.5 percent at $0.181 per share on its new exchange Thursday morning.
The company’s revenue has been falling year after year—from $294 million in 2010 to $269 million in 2011 to $254 million in 2012. Now, Dolan expects its 2013 revenue to be between $150 and $154 million—almost half what it was three years before. A portion of that drop, however, came from the sale of two of its struggling mortgage default businesses in July.