The actions are the latest in a series of developments that have clouded the company. Two weeks ago, USOL said it was working with lenders to bring the company into compliance with lending agreements. It also hired an investment company to consider deals.
USOL, through its US OnLine subsidiary, offers telephone, cable television and Internet services to multifamily housing units. It lists communities owned by AMLI Residential, Simpson Housing and Gables Residential among others in its seven-city network.
The delisting threat comes because stock has traded below $1 for 30 straight days. It's a threat that many companies have faced in the downturn of the stock market. Such a delisting makes it harder for the company to attract the attention of large investors. USOL shares opened today at 64 cents.
"We believe we have near-term opportunities that will generate support for our stock, but we need time to complete them," said Jim Livingston, USOL's president and CEO. He said the move to the small cap market gives it the ability to maintain "excellent market visibility."
USOL also said Rob Solomon will leave the chairman's post to pursue additional outside interests. "Because of my strong emotional and financial ties to the company, I will remain actively involved in certain strategic areas as well as continuing to be fully committed to USOL's future success," he said in a prepared statement. The company did not say who would replace Solomon or whether another member will be added to the board.
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