HispanicBusiness

Quepasa, the social networking site that has fashioned itself as the Facebook of the Spanish-speaking Hispanic market, is in danger of getting de-listed from NASDAQ, despite witnessing an explosion of new users. The company today announced that it had received a notice letter from the exchange on April 6.

Formerly a Web portal for Spanish speakers, the Florida-based company relaunched as a social networking site in February 2008. By June, it was getting 2,800 signups per week. By September, that figure had skyrocketed to 110,000.

In January, the company announced a strategic partnership with Playboy Mexico to launch a model search to find the next Playboy Mexico Playmate of the Year for 2009.

But the successful attempts to build an audience apparently haven't yet delivered the desired results on the company's stock price.

Under NASDAQ's rules, Quepasa is required to maintain a minimum of $2.5 million in stockholders' equity, or $35 million in the market value of listed securities. For the year ending Dec. 31, the company's listing on those measures was about $1.3 million and $26 million, respectively.

Further, the company has reported net losses in each of the last three years, ranging from about $7.2 million to $13.6 million.

In order to remain on the list, the company needs to show a net income from continuing operations of $500,000 in the most recent fiscal year, or in two or the last three fiscal years.

NASDAQ has given the company until April 21 to draft a plan to achieve and sustain compliance with all listing requirements. Quepasa, meanwhile, is "currently reviewing options to regain compliance," according to the company's press release.

NASDAQ is an American stock exchange with about 3,200 companies, many of them in the technology sector. Getting de-listed could mean that the company will be listed on a smaller exchange. Companies that get de-listed are often under financial strain and near bankruptcy, according to Investopedia, a Forbes Digital company.

Quepasa executives were unavailable for comment Wednesday afternoon.