Radio One back on the NASDAQ bubble


Radio OneThere probably is or will be a great big circle around the date January 22, 2013 on Radio One’s corporate calendar. That is its current deadline to get back into compliance with the minimum standards required to continue trading its Class A common stock on NASDAQ.

The company has been trading below $1 for some time, and RBR-TVBR reported its endangered status over a week ago. It received NASDAQ notification that it had been under $1.00 for 30 days and was in jeopardy on 7/26/12.

To get back in NASDAQ’s good graces, Radio One must equal or exceed $1.00 for its Class A common stock for at least 10 consecutive business days. It may try to rectify the situation with a reverse stock split, as long as it does so far enough in advance of the 1/22/13 deadline. And if it fails to come into compliance by that date, it may apply for an extension.

Radio One’s Class D shares are unaffected. In a statement, Radio One said, “The notification does not affect the Class D Common Shares which represent over 95 percent of the Company’s outstanding public float.  The Company’s Class A Shares maintain their right to convert into Class D shares.”

Radio One just got its Class D stocks over the $1M in November of 2010.

However, the company’s Class D issues would appear to be in hot water as well. When the markets closed 7/30/12, the Class A was at $0.92 on a day when it lost five cents. Class D stocks only lost three cents, but it took their price per share all the way down to $0.84.