Nasdaq has given Salem Media Group just over five months to regain compliance with the stock exchange’s rule about the makeup of the company’s board of directors after Roland Hinz resigned from the board last week. With Hinz no longer in the picture, the Christian media company’s doesn’t meet the Nasdaq requirement that independent directors comprise a majority of its board.
In a regulatory filing, Salem says it informed the stock exchange and subsequently received a notice of non-compliance. But the majority independent board requirement has a “cure period,” giving Salem until its next annual shareholders meeting or December 12, 2019 – whichever comes first – to get back in Nasdaq’s good graces. Salem says it will regain compliance at its next annual shareholders meeting set for May 2019.
Hinz had been a director of the company since September 1997. He also served on its nominating and corporate governance and compensation committees. Salem says his decision to resign is “not the result of any disagreement with the company on any matter relating to the Company’s operations, policies, or practices.”
Hinz has been owner, president and editor-in-chief of motorcycling and biking trade magazine publisher Hi-Torque Publishing Company since 1982. He is also the managing member of Hi-Favor Broadcasting, which owns KLTX Long Beach (1390) and KEZY San Bernardino (1240), which were bought from Salem in the early 2000s, and KSDO San Diego (1130). All three stations carry the Spanish religious “Radio Nueva Vida” format.
Salem investors don’t seem all that concerned about the Nasdaq warning. The company’s share price was down by just a penny during Wednesday trading.