Come May 15, the ability to purchase or sell shares of Emmis Communications stock on Nasdaq will become an impossible task.
That’s because the company led by CEO Jeff Smulyan, which is a much smaller holder of radio broadcasting stations than in years’ past, is voluntarily delisting its Class A common stock from the exchange.
In a statement distributed Friday, Emmis explained the reason for its decision: the company presently has fewer than 300 holders of record.
As such, it believes the best path forward is to deregister its common stock under the Securities Exchange Act of 1934 and suspend its public reporting obligations.
“We’ve undertaken a detailed and thoughtful review of the costs and benefits associated with being a Nasdaq-listed and SEC reporting company,” Smulyan explained. “After careful consideration, our Board of Directors unanimously decided to voluntarily delist from Nasdaq and deregister with the SEC as we believe the expected savings of more than $1 million per year outweigh the advantages of continuing as a Nasdaq-listed and SEC reporting company.”
Emmis intends to file a Form 25 with the Securities and Exchange Commission (SEC) on or about May 4, in order to move forward with delisting from Nasdaq.
The Company anticipates that the last day of trading on Nasdaq will be on or about May 13.
Emmis’ Class A Common Stock “may thereafter” be eligible for trading on an over-the-counter market.
But, that will only occur if one or more brokers chooses to make a market for Emmis’ Class A common stock. And, Emmis notes, “there can be no assurances regarding any such trading.”
On or about May 14, Emmis expects to file a Form 15 with the SEC, at which time it anticipates that its obligations to file periodic reports under the Securities Exchange Act of 1934, as amended, including annual, quarterly and current reports on Form 10-K, Form 10-Q and Form 8-K, respectively, will be suspended.
All requirements associated with being an Exchange Act-registered company will cease 90 days thereafter.
That said, Emmis still intends to file its annual report on Form 10-K for the fiscal year ending Febr. 29, 2020.