Spanish Broadcasting System is no stranger to troubles maintaining its requisites to stay on the NASDAQ Global Market list. To address this problem, it has been granted permission to move its stock to the NASDAQ Capital Market, where the requirements are not so stringent.
Frequently, companies fall into stock market non-compliance when their share price dips below $1. That is not the case this time – SBS closed on Thursday 4/11/13 at $2.60 per share. However, its total capitalization has dipped below $15M for 30 consecutive days.
Earlier this month when sharing its Q1 quarterly results, SBS said it had been informed of the shortfall 10/3/12 and given 180 days to bring the total up. It did not expect to be able to do so and requested the move to Capital Markets.
SBS stated, “The Company’s common stock began trading on The NASDAQ Capital Market at the opening of business on April 10, 2013. The Company’s common stock will continue to trade under the symbol ‘SBSA.’”
The move does not absolve SBS of responsibilities. SBS explained, “The NASDAQ Capital Market is one of the three markets for NASDAQ-listed stocks and operates similarly to The NASDAQ Global Market. Companies listed on The NASDAQ Capital Market must meet certain financial requirements and adhere to NASDAQ’s corporate governance standards.”
The move was officially approved by NASDAQ the day before, 4/9/13.