Radio Stock delistings – back in October…

Posted on July 10, 2009 by Art Stone

Radio Stock delistings – back in October 2008, Nasdaq announced it was suspending its rule requiring stocks to maintain a price of $1 a share to continue to be traded publicly. That waiver will expire July 19th – in 9 days. Is Nasdaq prepared to stand up to Al Sharpton’s thugocracy? Radio One has been in violation of the rule since October. Westwood One, Sirius/XM and Cumulus will also face delisting. Once they get the notice, they have 180 days to come into compliance. If they’re still big enough, a company can do a reverse stock split to stay alive (that’s what Westwood One is trying to do, but they botched the attempt at their board meeting)

About Art Stone

I'm the guy who used to run StreamingRadioGuide.com (and FindAnISP.com).
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2 Responses to Radio Stock delistings – back in October…

  1. Art Stone says:
    July 10, 2009 at 1:41 pm

    My bad…. Westwood One has already been delisted. They are doing the reverse stock split (200:1) in an attempt to try to get relisted. Their stock is trading a little under $.05 a share. (Last year, the companay lost $2.33 per share). A 200:1 reverse split would bring the share price up to about $10.00, but it doesn’t make the company worth any more. It would just magify the loss per share to $466 per share on a $10 stock. There are about 100 million shares of class A stock outstanding, making the company “worth” about $5 million. The company has already been taken over by its lenders – the class A stock is basically a fiction at this point.

  2. Art Stone says:
    July 10, 2009 at 1:56 pm

    Cumulus went below $1 on June 25th…. the price has to stay below $1 for 30 consecutive days, so they won’t get the notice until the end of July at the earliest

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