Cumulus Media has been removed from the NASDAQ stock market for not complying with a pair of its minimum listing rules. The delisting became effective with the open of business Wednesday (November 22) and follows an unsuccessful attempt by Cumulus to plead its case before the NASDAQ hearings panel.
Cumulus is off the big board for failing to regain compliance with two minimum standards. One has to do with the amount of stockholder equity on its balance sheet; the other is the stock price minimum of $1. Cumulus stock has been trading below the $1 minimum pricing requirement since Feb. 24. It closed at 26 cents on Tuesday, down 9%.
The company was first notified that it fell out of compliance with the minimum equity listing standard in early April. That has to do with the value of its stockholders’ equity on the company’s balance sheet, which no longer exceeds the $2.5 million minimum listing requirement.
On Oct. 26 Cumulus unsuccessfully appealed the delisting notices before the NASDAQ hearings panel.
Effective Wednesday, shares of Cumulus are being traded under the same “CMLS” ticker on the OTC Markets, joining Spanish Broadcasting System which was also removed from the big board for failing to comply with minimum listing standards. In January, SBS moved to OTC nearly one year after falling out of compliance with NASDAQ’s minimum market value rule.
“The transition to the quotation of the Company’s Class A common stock on the OTCQX will have no effect on the Company's business or operations,” Cumulus said Tuesday in a filing with the Securities and Exchange Commission. “The Company will continue to file periodic and other required reports with the SEC under applicable federal securities laws that will be available on the SEC’s website, www.SEC.gov.”