Nasdaq Issues Delisting Warning to Cumulus Media
Cumulus Media has recently been notified by Nasdaq that its stock shares have been trading below the $1.00 bid threshold for 30 days, putting the company at risk of delisting. The radio group saw a drop in its stock price from $1.17 on October 31 to $0.94 on November 1, the day its third-quarter results were released. As of December 20, the stock closed at $0.75, prompting Nasdaq to send a notification of noncompliance on December 16.
Cumulus Media now has until June 12, 2025, (180 calendar days) to bring its share price back up to at least $1.00 for 10 consecutive business days to regain compliance with Nasdaq’s regulations. If the company fails to meet this threshold, they may be eligible for additional time to rectify the issue by fulfilling other listing requirements. To apply for an extension, Cumulus would need to notify Nasdaq of its intention to address the deficiency and meet the trading price threshold within an additional 180 calendar day period.
In a recent SEC filing, Cumulus Media expressed its commitment to actively monitoring the closing bid price for its Class A common stock and exploring options to address the deficiency and comply with Nasdaq’s rules. Notably, other media entities like Beasley Media Group and Salem Media Group have faced similar delisting warnings in the past. Beasley Media Group underwent a reverse stock split to comply with the minimum bid threshold, while Salem Media Group chose to voluntarily cease trading on Nasdaq and transition to OTCQX in New York.
On a positive note, LiveOne has successfully regained compliance with Nasdaq after receiving a potential delisting warning last month. As companies navigate the complexities of stock trading requirements, it remains crucial for them to proactively address any compliance issues and maintain their listings on major exchanges like Nasdaq.
