Steamboat Springs American Skiing Co.'s stock will disappear from the ticker of the New York Stock Exchange on March 14.
ASC Chief Executive Officer B.J. Fair said in a prepared statement Wednesday he'd been informed by the NYSE that his company's stock would be delisted. He predicts the shares will be traded in the future on an over-the-counter listing service.
Fair said American Skiing Co. does not believe the delisting will affect its current operations, sales and marketing or financial position. He added it would not affect the ongoing restructuring of American Skiing Co. That process includes the pending sale of the Steamboat Ski Area to a group of investors led by Tim and Diane Mueller, owners of Okemo Mountain in Vermont.
The sale is tentatively set to close in mid-March. Steamboat Ski Area Vice President of Marketing Andy Wirth said recently that management representatives from Steamboat and Okemo have been informally comparing notes to begin the process of integrating systems.
ASC issued a news release announcing the change in its status but not until after Wall Street's closing bell on Wednesday. The stock finished the day at 29 cents on trading of 25,000 shares.
The news did not come as a surprise to ASC executives.
They had asked for an 18-month extension in late January, when the NYSE indicated that it was considering taking ASC stock, which trades as SKI, off the exchange. As the stock price sank to an all-time low this week, the NYSE opted not to wait.
"While we are disappointed with the Exchange's decision, we remain focused on improving our operations, strengthening our financial position and creating value for all of our investors," Fair said."
He added that he expects the company's shares will begin trading on the Over the Counter Bulletin Board (OTCBB) upon suspension of trading on the NYSE.
The OTCBB is a regulated quotation service that displays real-time quotes concerning over-the-counter securities. An OTC equity security is one that is not listed on NASDAQ, the NYSE or other national securities exchanges.
The criteria for listing on the NYSE requires that the stock price remain at $1 or more over a 30-day trading period.
ASC's hasn't been at $1 since Oct. 22, 2001.
Trading of SKI shares will be suspended prior to the opening of the NYSE on March 14.
The press release issued by ASC Wednesday stated that the company would "provide additional information to investors in due course."