10 million shares of Class A common stock have been registered by Citadel Broadcasting for its 2010 Equity Incentive Plan to reward company managers. None of the shares have yet been issued.
To come up with an estimated value to pay the SEC registration fee, Citadel had to rely on the very limited “pink sheets” trading of its limited voting rights Class B stock, since there has been no trading yet of any Class A stock. The average trading price of Class B shares was stated as $22.875, so the registration fee was paid based on the 10 million Class A shares being valued at $228.75 million.
Since RBR-TVBR reported that the warrants which are convertible to Citadel’s Class A stock on a 1:1 basis had begun trading on the pink sheets as CDDGW, the company has also gotten pink sheet ticker symbols issued for its Class A stock, CDELA, and Class B stock, CDELB. There has been miniscule trading in the Class B – the last trade we found was at $23 on August 11 – and none yet for the Class A. Under the terms of its Chapter 11 reorganization plan, the company is required to seek a listing on the NYSE or Nasdaq, but that has proven to be a slow process. So, the over-the-counter pink sheets remain the only venue available to date for trading Citadel’s stock and warrants.
UPDATE: There was a single trade of Class B shares on Tuesday, August 17th, over 40K shares, also at $23.