Emmis Communications announced it received notification from Nasdaq on 11/1, that the Company’s Class A Common Stock had closed below the minimum $1.00 per share bid requirement for 30 consecutive business days and therefore is not in compliance with Nasdaq Marketplace Rule (the “Minimum Bid Rule”). The Company has until 5/2/11, to regain compliance. In the meantime Class A Common Stock will continue to trade on the Nasdaq Global Select Market.
“This news is not unexpected,” said Emmis CEO, Jeff Smulyan. “We are actively evaluating our alternatives and are confident we have a variety of options to address this situation prior to May 2, 2011.”
If at any time before May 2, 2011, 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 Emmis it has achieved compliance. Of course, if Emmis does not regain compliance by 5/2, Nasdaq will notify the company its Class A Common Stock will be delisted. Nasdaq rules would then permit the company to appeal any delisting determination by the Nasdaq staff to a Listing Qualifications Panel.
Emmis says it intends to actively evaluate and monitor the bid price for its Class A Common Stock between now and 5/2, 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.
The notification does not affect the listing of the Company’s 6.25% Series A Cumulative Convertible Preferred Stock, which will continue to trade on the Nasdaq Global Select Market under the symbol “EMMSP.”
RBR-TVBR observation: No doubt the failed buyout deal from Alden Global Capital has affected investors’ mindsets on the stock price. The company’s price has been dropping from the $1.50-$1.60 area since the news. Emmis’ fiscal Q3 ends this month, so we will hear more about when they report.