Failure to restate past earnings, which would allow the delayed release of financial results, is to cost Peace Arch Entertainment its stock listing on the NYSE Amex Exchange.

The production company on Monday said NYSE Amex LLC served notice that its common shares will be delisted on Sept. 30, pending an appeal that Peace Arch said it will not make.

Upon delisting from Amex, the Toronto shop expects its common shares will be traded on the Pink Sheets, a U.S. market for highly speculative stocks.

Shares in Peace Arch are also under review by the Toronto Stock Exchange over similar concerns that it has not filed restated financial results due to an ongoing accounting probe.

The indie producer said its business will ‘continue in the normal course’ after the Amex delisting.

Peace Arch has yet to file its fiscal 2008 statements and amended statements for fiscal 2006 and 2007, and warned Monday that ‘there can be no assurance as to whether or when such a filing will occur.’

Shares in Peace Arch traded down US$0.03, or 24%, to US$0.10 on the Amex Exchange during mid-afternoon trading on Monday.