Cary-based Dex One (NYSE: DEXO), a provider of yellow pages and Internet advertising services, says it is appealing a decision by the NYSE to delist its stock.
Dex One is in the process of mergine with Texas-based SuperMedia.
The Cary firm said after the markets closed Wednesday that it had received the delisting notice based on its failure “to maintain an average global market capitalization over a consecutive 30 trading day period of not less than $100 million.”
While the appeal is reviewed, DEXO remains on the NYSE but with a “BC” designation since Dex One is not within compliance.
“Dex One said it respects the Exchange’s rules and processes, but believes several factors related to its proposed merger with SuperMedia Inc. warrant special consideration,” the company said in a statement.
Those considerations:
- “The combined company pro forma market capitalization will be in excess of $150 million, based on current trading levels of Dex One and SuperMedia shares;
- “The transaction has been structured as a stock-for-stock merger and will include a 1-for-5 reverse split at merger close to alleviate any future non-compliance; listing issues
- “More than 70 percent in number and 80 percent in value of Dex One secured lenders support the merger;
- “The combination will create one of the largest marketing services companies in the United States with a stronger financial position than either of its predecessors; and
- “The merger is on track to close in the first half of 2013.”
Dex One and SuperMedia (Nasdaq: SPMD) will seek approval from shareholders for the proposed merger of the two firms on March 13.
The companies have said the merger would mean the moving of the Dex One headquarters to Texas.
Shareholders of record as of Jan. 25 are eligible to vote.
If the merger is successful, Dex One shareholders would own some 60 percent of the combined venture.
The deal was announced last August.
