MIAMI BEACH, FLA. — The owner of the Mega TV network and a group of Spanish-language radio stations in the mainland U.S. and Puerto Rico saw its stock tumble 17.24%, to $2.40, in trading on Nasdaq yesterday (1/18).
It turns out it will be the last time this company can see any fall — or climb — on Nasdaq.
That’s because Spanish Broadcasting System (SBS) has been delisted, with trading immediately suspended following yesterday’s closing bell.
As a result, SBSA shares are heading to an Over-The-Counter exchange.
Nearly one year ago, on Jan. 28, 2016, SBS received a written notice from The Nasdaq Stock Market advising the company that the market value of its Class A common stock for the previous 30 consecutive business days had been below the minimum $15 million required for continued listing on the NASDAQ Global Market, pursuant to NASDAQ Listing Rule 5450(b)(3)(C).
The notice also stated that pursuant to NASDAQ Listing Rule 5810(c)(3)(D), the company would be provided an initial grace period of 180 calendar days (or until July 26, 2016) to regain compliance with the rule.
That didn’t happen. Thus, the next day SBS received written notification that unless the company requested a hearing before the NASDAQ Hearings Panel, the company’s common stock would be delisted.
A hearing was requested, and appeal occurred on Sept. 8. On Sept. 17, SBS received written notification from NASDAQ , dated Sept. 12, granting the company’s request to continue the listing of its shares on the NASDAQ Global Market until Jan. 23, 2017.
NASDAQ required that, during this exception period, SBS provide prompt notification of any significant events that occurred during this time that called into question the company’s ability to demonstrate compliance with the rule.
This month, SBS concluded that it could not regain compliance with the rule by Jan. 23. The company, therefore, notified NASDAQ of the determination on Jan. 13.
With the delisting, trading will immediately shift from NASDAQ to the OTCQX Best Market. All Class A Common Stock will trade on the OTC under the stock ticker “SBSA,” with no changes to SBS’s stock symbol.
RBR + TVBR