Since its stock price has been below a buck for over 30 consecutive days, Young Broadcasting has received a delisting notice from the Nasdaq Global Market. The company now has until mid-August to get its stock price back above the minimum threshold or lose its Nasdaq listing.
The delisting notice was hardly unexpected. Nasdaq requires a minimum price of one dollar for continued listing of a stock on its marketplace. Young now has 180 days from the notice date, which is August 13th, to regain compliance. That would require the bid price for the stock to close at one dollar or more for 10 consecutive business days.
Young announced last week that it had taken cost-cutting measures designed to save the company 15 million per year. That included an 11% reduction it its workforce companywide. Young owns and operates 10 television stations.
RBR/TVBR observation: It’s been quite a while since Young’s stock traded in double digits, but getting back above a buck before August 13th is not impossible by any means. The company has already announced plans to try to sell its largest station, KRON-TV (Ch. 4, MyNetworkTV) San Francisco and talks are well underway with potential buyers. A deal to sell KRON at a decent price would likely give the stock a big boost.