The reverse stock split implemented four months ago failed to lift the company’s shares above the NYSE’s minimum bid price of one dollar, leading to the delisting action. A Securities and Exchange Commission (SEC) filing confirmed that the NYSE had adhered to its regulations in removing Audacy’s securities from listing and/or registration.
Despite this setback, Audacy remains a publicly traded entity, with its shares finding a new home on Nasdaq’s over-the-counter market under the symbol “AUDA.” The NYSE mandates companies to maintain a minimum average closing price of $1 per share over 30 consecutive trading days, a criterion Audacy struggled to meet even after the reverse stock split.
The reverse stock split, effective June 30, significantly reduced the number of Audacy’s outstanding class A shares, consolidating them from approximately 137.5 million to about 4.6 million. However, this move failed to prevent the company’s descent into non-compliance with NYSE standards.
In tandem with its stock market struggles, Audacy faced a potential default on its second-lien notes, maturing on March 31, 2029. A 30-day grace period, originally set before default, was extended to 60 days, providing Audacy with additional time to negotiate with its lenders. Despite this extension, the company faces challenges, as any default on a separate credit facility or a missed interest payment could terminate the grace period.
Audacy’s efforts to navigate its financial challenges involve taking advantage of grace periods on multiple loans. The company’s stock experienced a 14 percent boost in mid-Monday trading, possibly reflecting positive sentiments amid these financial maneuvers. As Audacy grapples with debts totaling approximately $1.9 billion, its interactions with lenders, hiring of legal firms, and engagement with restructuring advisors underscore the company’s commitment to addressing its financial uncertainties and sustaining long-term growth.
The addition of “going concern” language to its annual financial report further highlights the precarious nature of Audacy’s financial situation, prompting strategic moves to fortify its capital structure and ensure the continued viability of its operations.