Altnet to be delisted
Altnet, Kazaa’s dodgy alter-ego, owned by Brilliant Digital Entertainment, certainly talks the talk. But it apparently can’t walk the walk.
Infamous for its spyware and for trying to press p2p operators into carrying its DRM product in exchange for not enforcing its lame-duck patent, among other things, it’s to be delisted for failing to meet minimum stock market financial requirements.
A statement here says:
“AMEX determined that the Company was not in compliance with the following continued listing standards:
“(i) maintaining at least $4 million of stockholders’ equity, having incurred losses from continuing operations and/or net losses in three of its four most recent fiscal years (at September 30, 2003, the Company’s stockholders’ equity was approximately $2,473,000);
“(ii) maintaining at least $6 million of stockholders’ equity, having incurred losses from continuing operations and/or net losses in its five most recent fiscal years;
“(iii) sustaining losses which are so substantial in relation with its overall operations or its existing financial resources, or its financial condition has become so impaired that it appears questionable, in the opinion of AMEX, as to whether the Company will be able to continue operations and/or meet its obligations as they mature.”
Altnet will appeal the exchange’s decision, says Derek Broes, Brilliant’s executive vp in a CNET story here.
It also quotes him as saying, “I think it has no impact whatsoever. Altnet is working the same as it always has. We’re trucking along, and people are scrambling around the office.”
Right.
As part of a joint venture with Kazaa parent Sharman Network, Altnet has spent considerable time trying to woo big record labels and movie studios into distributing content through the file-trading service, “largely without success,” CNET says in a considerable understatement, adding:
“The company has persuaded some prominent independent musicians and game developers, most notably Atari (formerly Infogrames) to sell their products through Altnet’s network, however.
“Brilliant’s management is negotiating with some of its investors and debt holders to convert the debt into equity shares in the company.”
