Sirius XM says it was notified September 15th by Nasdaq that it not in compliance with the exchange’s minimum price rule, which was recently reinstated after months of suspension. That was hardly a surprise, since the stock had not been up to the one buck mark since September 19, 2008 – a year ago tomorrow.
“We intend to maintain the listing of our common stock on Nasdaq, and we will consider available options if our common stock does not trade at a level likely to result in compliance with Nasdaq’s minimum bid price requirement by March 15, 2010. In May 2009, our stockholders approved an amendment to our certificate of incorporation to effect a reverse stock split at a ratio of not less than one-for-ten and not more than one-for-fifty. Our board of directors has authority to select an exchange ratio within the approved range at any time prior to June 30, 2010. Our board of directors intends to effect the reverse stock split only if it determines the reverse split to be in the best interests of our stockholders. Such a reverse split would put us in compliance with the Nasdaq bid price requirement.
Sirius XM now has until March 15 to regain compliance. That would come if and when the stock closes at or above $1.00 for a minimum of 10 consecutive trading days.
CEO Mel Karmazin has resisted pulling the trigger on a reverse split of the company’s stock, even though shareholders have given the go-ahead. Karmazin said in his last quarterly conference call that he doesn’t think the $1 rule should even exist. [LINK] But, since it does, he’s hoping that the price will move back up above the mark in time to avoid instituting a reverse split.