Spanish Broadcasting System had been facing a possible delisting by Nasdaq for much of 2009 because its stock was trading below the exchange’s minimum of $1. SBS got back in Nasdaq’s good graces in the spring, but now its stock price has fallen again and it’s gotten a new delisting warning.
On October 12th SBS received a written deficiency notice from The Nasdaq Stock Market advising the company that the closing bid price of its common stock for the previous 30 consecutive business days had been below the minimum $1.00 per share required for continued listing on the NASDAQ Global Market, SBS said in an SEC filing Monday (10/18).
Under the Nasdaq rules, SBS now has an initial grace period of 180 calendar days, or until April 11, 2011, to regain compliance with the Minimum Bid Price Requirement. If does not get its stock price back above $1.00 by next April Nasdaq will send a delisting notice. At that time SBS will be able to appeal to a Nasdaq Hearings Panel.
“The Company intends to use all reasonable efforts to maintain the listing of its common stock on the Nasdaq Global Market, but there can be no guarantee that the Company will regain compliance with the Minimum Bid Price Requirement,” SBS stated.