Radio broadcaster Cumulus Media has received a letter from NASDAQ warning of a potential delisting from the publicly-traded stock exchange if the company does not bring its per-share price above a certain threshold.
The warning letter amid ongoing financial turbulence at Cumulus, where its stock price has traded below $1 per share over the past several weeks.
That is below the minimum threshold required to be listed on the NASDAQ stock exchange. NASDAQ sent its warning letter on December 16. On Monday, its stock price closed at $0.75 per share — still below the required threshold.
Cumulus must maintain a stock price above $1 per share for at least 10 consecutive days to return to compliance with NASDAQ’s rule. The company has until June 2025 to comply with this requirement; if it does not, NASDAQ is likely to pull Cumulus from its exchange, though the company could still trade over-the-counter.
“The Company intends to actively monitor the closing bid price for its Class A common stock and will evaluate potential options to resolve the deficiency and regain compliance with the rule,” Cumulus said in a filing made with the U.S. Securities and Exchange Commission last week.
Cumulus is the second-largest owner of commercial AM and FM radio stations in the United States, with nearly 430 radio outlets in nearly 90 media markets. The company is second in size to Audacy, which received a similar delisting letter last year. Salem Media and Beasley Media have also delisting warning letters over their low stock prices in the past two years, and Urban One received a letter from NASDAQ warning about a possible delisting after that broadcaster failed to file timely financial disclosure earning reports.
