It looked for a while like Sirius XM was going to get back in Nasdaq’s good graces, but it was not to be. The company’s stock price closed back below a dollar on Monday, 89 cents to be precise, ending its string two days short of exchange listing redemption. The stock was essentially flat on Tuesday, ending the day up only a fraction of a cent, so still rounded to 89 cents.
Sirius XM needed to have its stock close at a buck or better for 10 straight trading days to cancel a delisting threat by Nasdaq. It had closed above $1 for eight consecutive sessions before being hit by a sell-off on Monday. Now, if the stock recovers and crosses above $1 again the count to 10 will begin again.
It is not possible now for Sirius XM to regain compliance with Nasdaq’s $1 stock price rule by a March 15th deadline. However, Nasdaq recently adopted new rules which would allow it to extend the deadline for many more months.
RBR-TVBR observation: With Sirius XM, one of the most heavily traded Nasdaq stocks, so close to the $1 minimum, it is highly unlikely that the exchange will move ahead with a delisting move. Sirius XM is a prime candidate for a long extension under the recently adopted rule change.
