It’s not like Radio One CEO Alfred Liggins doesn’t have enough to deal with trying to negotiate new terms with the company’s debt holders. Now it’s also received a warning from Nasdaq that its stock faces possible delisting.
Radio One says it received notice from Nasdaq on September 20th that the company was not incompliance with the stock exchange’s minimum bid price – something executives of Radio One were no doubt well aware of. The notice stated that Radio One’s Class D common stock (ROIAK) had closed the minimum bid price of $1 for 30 consecutive business days as of September 17th.
Radio One now has 180 calendar days, until March 21, 2011, to regain compliance with the minimum bid rule. To do so the stock would have to close at $1 or better for 10 consecutive trading days.
What are the alternatives?
“If the Company does not regain compliance with the Rule by March 21, 2011, NASDAQ will provide written notification that the Company’s Class D common stock will be delisted. At that time, the Company may appeal NASDAQ’s determination to delist the Company’s Class D common stock to a Listing Qualifications Panel. Alternatively, the Company may apply to transfer its Class D common stock to the NASDAQ Capital Market. If its application is approved, NASDAQ will afford the Company a second 180 calendar day compliance period in order to regain compliance while on the NASDAQ Capital Market,” Radio One said in a statement.
RBR-TVBR observation: The bigger issue is getting the refi done. Once that is in place, the stock price issue could well take care of itself.
