Cumulus Files Special Meeting Proxy Statement To Vote on Reverse Stock Split
September 12, 2016 at 3:10 AM (PT)
CUMULUS MEDIA filed a preliminary proxy statement with the SEC last FRIDAY (9/9) previewing the company's next special meeting of stockholders and proposing a reverse stock split to avoid delisting by NASDAQ. No date was set for the special meeting in the statement.
The reverse split would be a 1-for-8 swap; if the move does not gather enough votes to pass on the first go-round, the statement provides that the shareholders can vote to adjourn to go get more votes. Shareholders of record as of FRIDAY, SEPTEMBER 9th will be allowed to vote at the meeting. The reverse split would reduce the number of shares of Class A Common Stock from 750,000,000 to 93,750,000, of Class B Common Stock from 600,000,000 to 75,000,000 and of Class C Common Stock from 644,871 to 80,609.
CUMULUS has until SUNDAY, OCTOBER 30th (180 days after TUESDAY, MAY 3rd, when the company moved from the NASDAQ Global Select Market to the NASDAQ Capital Market) to comply with the NASDAQ requirement that the stock trade at a price of at least $1 during a 30 consecutive trading-day period.