PDS Nasdaq listing in jeopardy

Wednesday, Dec. 15, 1999 | 10:42 a.m.

Las Vegas-based slot machine leasing firm PDS Financial Corp. said Nasdaq has notified the company it has until March 8 to meet Nasdaq's National Market listing requirement of a $5 million public float or face delisting.

PDS said it can meet Nasdaq's requirement if the value of the 2.2 million shares owned by the public exceeds $5 million for any 10 consecutive trading days between now and March 8.

At its recent average trading price of about $1.35 a share, PDS' public float is valued at about $3 million. The company has a total of 3.7 million shares outstanding, with a market capitalization of about $5 million.

The stock closed Tuesday at $1.25. It has traded between $1 and $5 a share over the past year.

If it's unable to maintain its listing on the Nasdaq National Market, PDS said, it will apply for listing on the Nasdaq SmallCap Market. That listing requires a minimum public float of 500,000 shares, a market value of $1 million and a bid price of $1 a share.

"We remain focused on completing several transactions before year end, and will address the listing requirements early next year," Chief Executive Officer Johan Finley said. "We continue to believe that the company is more valuable than the current share price is reflecting."

PDS Financial posted a $414,000 net loss for the third quarter, compared with net income of $42,000 in the 1998 third period. But the company said its lease portfolio had grown 130 percent since last December and should become accretive to earnings in the first half of 2000.