Trading in shares of Advanced Financial Inc., a residential mortgage lender, has been indefinitely halted.
The Shawnee, Kan.-based company is slated to be pulled from the American Stock Exchange list after failing to meet certain requirements.
Advanced Financial is required by the exchange to maintain a net worth of $2 million because it has had losses twice in the last two years. Currently, the company's net worth is $1.3 million, a spokesman said.
Advanced Financial is appealing the American Stock Exchange's decision and requesting a hearing before its board of governors. A date has not yet been set for the hearing.
In a written statement, William Moffatt, president of Advanced Financial, expressed "disappointment" over the exchange's decision.
The acquisition of a yet-unnamed California lender, expected to close shortly, would bring Advanced Financial's net worth above the $2 million mark, Mr. Moffatt said.
"Worst-case scenario, we go back to trading with Nasdaq," said the company spokesman.