Cumulus & SBS Warned Of Delisting

Cumulus Media and Spanish Broadcasting System (SBS) are both staring down the possibility of their stocks being delisted — Cumulus from NASDAQ and SBS from the OTC Markets. Last Friday, both companies notified the U.S. Securities and Exchange Commission that they have been warned once again that they need to get their numbers up or face delisting. The ponderous Cumulus Form 8-K, a skillful blend that is equal parts corporate-speak and authentic frontier gibberish, reads, in part, “On April 5, 2017, Cumulus Media Inc. received a notification from the Listing Qualifications Department of The NASDAQ Stock Market indicating that the Company is not in compliance with NASDAQ Listing Rule 5550(a)(2) because the bid price of the Company’s Class A common stock on The NASDAQ Capital Market has closed below $1.00 per share for 30 consecutive business days… In accordance with NASDAQ Listing Rule 5810(c)(3)(A), the Company has 180 calendar days, or until October 2, 2017, to regain compliance with the requirements under the Rule. If, at any time before that date the bid price of the Company’s Class A common stock closes at $1.00 per share or more for a minimum of 10 consecutive business days, NASDAQ will notify the Company that it has achieved compliance with the Rule.

However, the filing continues, “In the event the Company does not regain compliance with the Rule by October 2, 2017, the Company may be eligible for additional time to come into compliance with the Rule. To qualify, the Company will be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for The NASDAQ Capital Market, with the exception of the bid price requirement, and will need to provide NASDAQ written notice of its intention to cure the deficiency during the second compliance period. If the Company meets these requirements, NASDAQ will inform the Company that it has been granted an additional 180 calendar days to cure the deficiency. If it appears to the NASDAQ staff that the Company will not be able to cure the deficiency, or if the Company does not cure the deficiency following the additional time, NASDAQ will notify the Company that its Class A common stock will be subject to delisting.”