Audacy Asks For Reverse Stock Split

• Audacy, Inc. will be asking its shareholders to vote on May 24 to approve a reverse stock split in an effort to a) attempt to raise its per-share price, and b) avoid delisting from the New York Stock Exchange.

The plan was laid out in a lengthy March 24 SEC filing that reads, in part, “We are asking that our shareholders approve an amendment to our Amended and Restated Articles of Incorporation to permit us to effect a reverse stock split of our outstanding Class A and Class B Common Stock at a reverse stock split ratio ranging from any whole number between one new share for every two existing shares and one new share for every 30 existing shares, subject to and as determined by a committee appointed by the Board consisting of David J. Field, Joel Hollander and Sean R. Creamer. Our Board has unanimously approved and declared advisable the amendment effecting the Reverse Stock Split and recommends that our shareholders approve the amendment.”

The statement continues: “Our primary objective in effectuating the Reverse Stock Split is to attempt to raise the per-share trading price of our Class A Common Stock to continue our listing on the NYSE. To maintain our listing, the NYSE requires, among other things, that our Class A Common Stock have a closing price of at least $1.00 as of the last trading day of any calendar month and an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of that month… since August 1, 2022, the average closing price for our Class A Common Stock, over a consecutive 30 trading-day period, has remained below $1.00 per share.” [Ed. note: at market close Tuesday Audacy stock was trading at 0.12 cents per share].

In closing, the statement reads, “We strongly encourage you to vote in favor of this Proposal 2 to increase the likelihood that compliance may be achieved prior to action being taken to delist us from the NYSE.”