Just one week after being delisted from the NASDAQ National Market System,
troubled Source Media Inc. has hired UBS Warburg LLC as a financial advisor to
look into various options for the company, including a possible sale.
According to a press release, Source said it hired UBS to analyze 'its
financial condition, business plan and strategic alternatives, including
evaluating potential business combinations, dispositions of assets,
restructuring of liabilities and financing transactions.'
Source provides interactive digital-cable-television applications, localized
new-media advertising and vertical content. So far, however, its main customer
is Insight Communications Co. Inc., which also owns about 6 percent of Source's
stock, as well as warrants for another 18 percent.
Source was delisted March 8 after it failed to meet the exchange's
market-capitalization requirements. According to NASDAQ rules, companies must
maintain a market cap of at least $50 million. Source's market cap, based on
Wednesday's close of 41 cents per share, is about $7.2 million.
Source's stock continues to be traded on the NASDAQ over-the-counter bulletin
board under the symbol 'SRCM.'