April 17, 2001 6:30 PM PDT

Webvan receives word on delisting

Days after its chief executive resigned, Webvan has been notified by Nasdaq officials that the company will be delisted from the stock exchange in 10 days unless it seeks an appeal, a Webvan spokesman said Tuesday.

Webvan, which has failed to meet the Nasdaq Stock Market's $1 minimum share price for months, received the letter Monday, spokesman Bud Grebey said. Webvan executives have said in the past that they would appeal a delisting notice, but on Tuesday Grebey said he could not say what the company plans to do.

An appeal allows a company facing delisting to remain on the exchange for 45 days to allow for the appeals process. Most appeals are unsuccessful, a Nasdaq official said.

Webvan is reeling after Chief Executive George Shaheen resigned Friday, sending the company's stock price from 12 cents to an even more dismal 8 cents on Tuesday.

Among the Internet's last players in the home-delivery sector, Webvan has seen the dot-com shakeout trim the ranks. Companies like ShopLink.com and Streamline.com have folded, and online convenience store Kozmo pulled the plug on its operations Wednesday.

Delisted companies can be found on the OTC (over-the-counter) Bulletin Board--an exchange run by the National Association of Securities Dealers and a virtual no-man's-land for most companies that have been delisted. The OTCBB is a regulated quotation service that displays real-time quotes, prices and volume information for the more than 3,500 small-capitalization companies traded over the counter.

Once they become an over-the-counter stock, few companies return to the Nasdaq, as it becomes hard to attract investors, customers and even employees.

 

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