Radio broadcaster Cumulus Media will stop trading on the NASDAQ stock exchange on May 2, and will sell it stock exclusively through the over-the-counter market.
The transition comes after officials at NASDAQ issued a warning letter to Cumulus executives that said the company would be removed from the stock exchange in early May if it did not bring its per-share price above the required threshold of $1.
Shares of Cumulus have traded below that price since last October, and ended the trading day Wednesday at 27 cents per share. In after-hours trading, the share price of Cumulus dropped another 12 percent following NASDAQ’s warning letter.
A spokesperson for Cumulus confirmed to The Desk that the company opted to avoid the expense with developing a plan to remain on the NASDAQ, which influenced its final decision to trade over-the-counter after May 2. The de-listing will otherwise not affect Cumulus’ broadcast operations, the spokesperson affirmed, and its ticker symbol will remain “CMLS” even after it is removed from the NASDAQ.
Cumulus will report its first quarter financial results in early May.
