03/03/2009 1:00AM

Toronto Stock Exchange to delist Magna


Shares in Magna Entertainment Corp. will be taken off the Toronto Stock Exchange beginning April 1, the company announced Tuesday.

The Toronto Stock Exchange notified Magna that the shares will be delisted as of April 1 in a letter sent on Monday, Magna said in a release. The exchange had earlier warned Magna that its shares were in jeopardy of being delisted because the company was not currently in compliance with its code.

According to Toronto Stock Exchange rules, companies that are not profitable must meet four requirements to be listed, based on cash flow, tangible assets, ongoing operations, and "adequate working capital to carry on the business." Magna has lost $500 million over the past five years, owes $200 million in debt that comes due within the next three weeks, and has recently hired bankruptcy advisers.

Magna's stock continues to be traded on the Nasdaq stock exchange in New York, where it closed at 29 cents, down one cent, on Tuesday.