Emmis Communications has received notification from the Nasdaq Stock Market that its Class A Common Stock had closed below the minimum $1.00 per share bid requirement for 30 consecutive business days (starting July 19). As a result, Emmis faces possible delisting – although it has some time to come into compliance.
According to Emmis, it now has until February 27, 2012, to regain compliance with the Minimum Bid Price Rule. During this period, the stock will continue to trade on Nasdaq.
“The notice from Nasdaq was not a surprise, but the timing is ironic coming the very day before we closed the Merlin transaction and repaid approximately $120 million of our debt. We are optimistic that the performance of our businesses and our continued efforts to rationalize our balance sheet will enable us to achieve compliance with the Minimum Bid Price Rule before February 27, 2012,” said CEO Jeff Smulyan.
If at any time before February 27, 2012, the bid price of the Company’s Class A Common Stock closes at $1.00 per share or more for a minimum of 10 consecutive business days, Nasdaq will notify the Company that it has achieved compliance with the Minimum Bid Price Rule. If the Company does not regain compliance with the Minimum Bid Price Rule by February 27, 2012, Nasdaq will notify the Company that its Class A Common Stock will be delisted from the Nasdaq Global Select Market. Nasdaq rules would then permit the Company to appeal any delisting determination by the Nasdaq staff to a Listing Qualifications Panel.
“The Company intends to actively evaluate and monitor the bid price for its Class A Common Stock between now and February 27, 2012, and consider implementation of various options available to the Company if its Class A Common Stock does not trade at a level that is likely to regain compliance,” Emmis said in reporting the Nasdaq notification.