YNOT EUROPE – On Monday, NASDAQ suspended trading of shares belonging to Barcelona-based Private Media Group Inc., one of only a handful of adult entertainment companies to be traded on an American stock exchange. As a result, the company’s common stock commenced trading on the over-the-counter market at the opening bell on Tuesday.

In mid-September, the NASDAQ Listing Qualifications Panel notified Private of its intent to delist the company, based on “public interest” concerns about the Private’s leadership and financial health. According to a Form 8-K filed Sept. 22 with the U.S. Securities and Exchange Commission, the panel had serious reservations about Private’s continued viability as a corporate entity in the face of ongoing legal action in the U.S. Specifically, the panel mentioned the appointment of a receiver as part of a Nevada lawsuit seeking the ouster of chief executive officer Berth Milton; unauthorized loans by the company to Milton, who has failed to repay; the failure of Private’s board of directors to demand Milton repay excess salary he awarded himself as a “retention bonus”; and the attachment of Private’s assets by a New York court as the result of a lawsuit in that state.

In addition, the panel found Private in violation of the independent board of directors and audit committee requirements established by NASDAQ as a condition of listing.

Although Private could have appealed the panel’s decision, the company chose not to pursue that route.

“The company does not intend to appeal the panel’s determination to the NASDAQ Listing and Hearing Review Council,” a prepared statement distributed by Private noted. “The company remains committed to executing the compliance plan presented to NASDAQ to correct the issues raised by NASDAQ in the delisting notice previously reported … on Sept. 22, 2011.”