Cumulus Media Appeals To Remain Traded On NASDAQ

Shaky On NASDAQ

CUMULUS MEDIA has filed a Form 8-K with THE SECURITIES AND EXCHANGE COMMISSION explaining its appeal to NASDAQ to remain publically traded despite it falling below the required $1 per share mark for 30 consecutive business days. The company closed FRIDAY (10/6) at 33 cents, and is reportedly $2.4 billion in debt.

CUMULUS wrote in the filing, "On OCTOBER 3, 2017, CUMULUS MEDIA INC. received a notification from the Listing Qualifications Department of The NASDAQ STOCK MARKET LLC (“NASDAQ”) relating to the minimum bid price requirement contained in NASDAQ Listing Rule 5550. As previously disclosed, because the bid price of the Company’s Class A common stock on the NASDAQ CAPITAL MARKET had closed below $1.00 per share for 30 consecutive business days, the Company had received notice that it was not in compliance with the Rule and had 180 days to regain compliance. The Notice provided that, because the Company did not regain compliance with the Rule during the compliance period, the Company’s securities would be delisted from NASDAQ unless the delisting is successfully appealed.

"As previously disclosed, the Company has scheduled an appeal hearing for the delisting notice received relating to NASDAQ’s minimum stockholders’ equity requirement. At this appeal hearing, the NASDAQ hearings panel will consider this additional matter relating to the minimum bid price requirement in rendering a determination regarding the Company’s continued listing on NASDAQ.

"The Company’s Class A common stock will continue to trade on the NASDAQ CAPITAL MARKET while the appeal hearing is pending. As previously stated, there can be no assurance that the Company will be successful in its appeal and that the NASDAQ hearings panel will grant the Company’s request for an extension of time to regain compliance with either the Rule or the Equity Rule. In each event, if the Company is unsuccessful in its appeal, or it is not able to regain compliance with the Rule or the Equity Rule within any extension of time granted by the NASDAQ hearings panel, the Company expects that trading in its Class A common stock would thereafter be suspended and the stock would be removed from listing on NASDAQ. If the Company’s Class A common stock is removed from listing on NASDAQ, the Company expects that such stock would be eligible to be traded on the OTC Markets, an electronic quotation service operated by OTC Markets Group Inc. for eligible securities traded over-the-counter, on or about the same day or shortly thereafter."

« see more Net News