K-Tel International Inc, threatened with de-listing from the Nasdaq exchange (CI No 3,541), has come up with a plan it hopes will satisfy the requirements for continued listing. Nasdaq told K-Tel it had to have and demonstrate the ability to maintain net tangible assets of at least $4m. As of September 30, 1998, K-Tel had just $450,000. Since then, the exercise of employee stock options has raised $2,883,000 for the company. Add to that another 200,000 options worth $11.1875 which were awarded to chairman Philip Kives on December 15, which Kives has said he will exercise by December 31, and the company believes it can exceed Nasdaq’s minimum net tangible assets requirement – in spite of a $1m loss for the quarter. K-Tel attributes the loss to its continued investments in e-commerce. The company will present its plan to Nasdaq in a hearing expected to take place in early January. There’s no guarantee that Nasdaq will accept the plan or that the company will be able to raise the additional equity it needs for the long haul from outside sources.
