Cumulus Media is once again at risk of being delisted from NASDAQ.
The media giant’s stock has been trading below $1 per share for 30 consecutive business days, violating a NASDAQ listing rule. It submitted a filing to the U.S. Securities and Exchange Commission disclosing the notice.
There is no immediate impact on Cumulus’ current stock listing or trading status. The company has until June 16 to regain compliance by ensuring its stock price closes at or above $1 per share for at least 10 consecutive business days.
If Cumulus fails to achieve compliance, it can request an additional 180 days, provided it meets other NASDAQ listing standards. If the deficiency isn’t resolved within the extended timeline, its stock risks being delisted.
This is not the first time Cumulus, or other major radio companies, have faced delisting on NASDAQ. In 2017, the company was delisted from NASDAQ, which was followed by its filing for Chapter 11 bankruptcy.
Another broadcaster, Beasley Broadcast Group, executed a reverse stock split in September in hopes of avoiding a NASDAQ delisting. Audacy was delisted by the New York Stock Exchange last year prior to its bankruptcy filing.
“The company intends to actively monitor the closing bid price for its Class A common stock and will evaluate potential options to resolve the deficiency and regain compliance with the Rule,” Cumulus stated in its filing to the SEC, signed by Francisco Lopez-Balboa, its executive vice president and chief financial officer.
Cumulus is the third-largest revenue-generating radio company in the U.S. It owns approximately 400 AM/FM stations nationwide.
