Beasley Broadcast Group hopes that a reverse stock split will help it avoid delisting on Nasdaq.
The company’s board has approved a reverse stock split of its Class A Common Stock and Class B Common Stock at a ratio of 1-for-20. Its stockholders previously approved the plan and gave the board discretion to determine the final ratio.
Beasley has been at risk from not meeting the $1.00 minimum bid price requirement for continued listing on the Nasdaq Capital Market.
The reverse split is expected to become effective on Sept. 23.
Beasley is the one of the five largest U.S. commercial radio groups by revenue.
A reverse stock split is generally a defensive measure used when a company is going through difficult financial times. Cumulus did one in 2016, and Audacy did one last year. Beasley’s share price is down about 40% over the past year and is currently listed at 55 cents.
[Click to read: What is a reverse stock split?]
