Last week, Cumulus Media received a notification from the listing qualifications department of NASDAQ indicating that, based on the company’s stockholders’ equity of $6.95 million is not in compliance with the minimum stockholders’ equity requirement for continued listing on the NASDAQ Global Market. The rule
requires companies to maintain stockholders’ equity of at least $10 million or meet the alternative compliance standards relating to the market value of the listed securities or the company’s total assets and revenue. Now, Cumulus has until April 21 to provide NASDAQ with a plan to achieve and sustain compliance. If NASDAQ accepts the plan, NASDAQ may grant an extension of up to 180 calendar days to evidence compliance. Cumulus says it is continuing to evaluate potential options to resolve the deficiency and regain compliance, including the possibility of applying to transfer to the NASDAQ Capital Market.
