Radio One Is Put On The Clock By NASDAQ
May 27, 2008 at 4:25 PM (PT)
RADIO ONE received a letter on MAY 21st from The NASDAQ Stock Market, which alerted the Company that for the last 30 consecutive trading days, its Class A Common Shares have not maintained a minimum market value of publicly held shares of $5 million as required for continued inclusion by Marketplace Rules. The notification does not affect the Class D Common Shares, which represent over 95% of the Company’s outstanding public float.
In accordance with Marketplace Rules, the Company will be provided 90 calendar days, or until AUGUST 19th, 2008, to regain compliance with respect to the Class A Shares. If, at anytime before then, the minimum market value of the Company’s Class A Common Stock is at least $5 million for a minimum of 10 consecutive trading days, NASDAQ will provide written notification that the Company complies with the Rules. If compliance with this Rule cannot be demonstrated by AUGUST 19th, 2008, NASDAQ will provide written notification that the Company’s securities will be delisted. At that time, the Company may appeal NASDAQ’s determination to a listing qualifications panel.
"This is a result of the gradual migration of our Class A shareholders into our Class D Shares," said CEO ALFRED C. LIGGINS, III. "Since JANUARY 2005, we have seen shareholders convert almost 18 million shares of Class A Stock into Class D Stock given the conversion rights that the Class A Shares carry and the greater liquidity in the Class D Shares. Regardless, our focus is on maximizing long-term value and maintaining the liquidity of all of our securities."