The stock price of Spanish Broadcasting System (SBS) is still below the $1 minimum set by Nasdaq and is facing a possible delisting of its stock. At a hearing last week, SBS presented its plan to regain compliance and urged Nasdaq to continue its stock listing.
As first reported by RBR-TVBR, SBS is asking shareholders to approve a reverse split of the company’s stock. That reverse split of not less than 1-for-5 nor more than 1-for 10 would presumably put the company’s stock price well above the $1 level, albeit with a lot fewer shares outstanding. But the shareholder vote isn’t until June 1st, so SBS needs for Nasdaq to give it some more time.
SBS had this to report in its quarterly 10-Q filing with the SEC: “The hearing with the Nasdaq Hearings Panel took place on May 12, 2011, and we presented a compliance plan to regain compliance with the Rule through a reverse stock split of our common stock. As of the date hereof, the Nasdaq Hearings Panel has not rendered a decision regarding our compliance plan, and there can be no assurance that Nasdaq will grant our request for continued listing.”
So, stay tuned.