Sirius XM Gets Notice Of Share Price Noncompliance From NASDAQ
March 17, 2010 at 4:36 PM (PT)
As expected, SIRIUS XM RADIO has received notice from NASDAQ that it has not regained compliance with the $1 minimum closing bid price requirement to remain traded on the NASDAQ Global Select Market and is in danger of delisting. The company plans to request a hearing before a NASDAQ Listing Qualifications Panel to ask for continued listing on NASDAQ pending its return to compliance. NASDAQ has the option to grant up to 180 days' extension (in this case, through SEPTEMBER 13th) to regain compliance with the $1 price. The stock remains on NASDAQ while that appeal is pending, and SIRIUS XM says that it will take "all necessary steps" to remain listed, including, if necessary, a reverse stock split.
"SIRIUS XM is one of the most liquid securities on The NASDAQ Global Select Market; we have a large investor base consisting of both individual and prominent institutional stockholders; and our equity capitalization is greater than approximately 92% of the companies listed on The NASDAQ Global Select Market. We are committed to remaining listed on The NASDAQ Global Select Market," said SIRIUS XM CEO MEL KARMAZIN.
Meanwhile, despite the delisting threat, SIRIUS XM stock will be added to NASDAQ's Q-50 Index starting MONDAY (3/22). The index tracks the 50 stocks considered next in line to be included in the NASDAQ-100 index.