Blockbuster shares slip to new 52-week low as Stock Exchange warns of delisting

Blockbuster shares slip to new 52-week low

NEW YORK — Shares of video rental company Blockbuster Inc. fell Tuesday, a day after the company said it received a warning that it will be kicked off the New York Stock Exchange if it can’t raise its market capitalization.

The stock slipped another 3 pennies to a new 52-week low of 24 cents on Tuesday. It has traded as high as $1.56 over the past year.

The NYSE has informed the company that its average market cap has fallen below $75 million over a 30-day trading period. It has 45 calendar days to submit a plan for bringing its value back up within 18 months.

Blockbuster said Monday that it will ask its shareholders to approve a reverse stock split at their annual meeting in May. Although the could lift its stock price, it won’t raise Blockbuster’s market cap.

The company has been hammered by competition from mail-order services like Netflix Inc.’s and by inexpensive rental kiosks, like Redbox’s, which charge $1 per night.

Blockbuster warned earlier this month that it may have to file for bankruptcy court protection.