New York Stock Exchange Threatens To Delist Imation
Imation, the 3M spin-off that grew into Minnesota’s 39th largest public company, was notified by the New York Stock Exchange on Monday that it could be delisted for not complying with standards required by the exchange.
The data storage company said in a statement that it would respond to the NYSE by February 19 to indicate whether it plans to come into compliance. Exchange officials told Imation that its move to delist the company are due to Imation’s “average global market capitalization being less than $50 million over a consecutive 30 trading-day period and its stockholders’ equity being less than $50 million.”
Imation’s market capitalization is currently half the required amount—approximately $23.8 million as of Monday.
Imation—which sold digital storage devices including CDs, DVDs and external hard drives—said in a regulatory filing that it also sold its IronKey mobile security solutions business to Kingston Digital and DataLocker.
Fountain Valley, California-based Kingston acquired Imation’s assets responsible for producing IronKey flash drives for $4.25 million. The deal to Overland Park, Kansas-based DataLocker includes Imation’s business that provided software and services to IronKey. DataLocker paid a purchase price of $400,000 and will assume debt service obligations amounting to roughly $2 million.
Last month, Imation announced it would leave its Oakdale headquarters in favor of its Thousand Oaks, California location. Its Oakdale office was sold to Slumberland Inc. for $11.5 million. On that same day, Imation said it also sold Memorex, a consumer electronics brand specializing in CDs, DVDs and computer accessories, for $9.4 million.
At the time of Imation’s Minnesota departure, interim CEO Bob Fernander said in a statement that the company was “on track to completing the restructuring of our legacy business in Q1 2016.”
In 2007, Imation shares were priced at more than $44. However, the company’s stock value has plummeted since then, opening on Monday at just $0.66.