Nasdaq Grants Urban One Stay Extension
Urban One Inc is getting the extension of the automatic 15-day stay of suspension from the Nasdaq Stock Market LLC pending a hearing scheduled for November 30 and a final determination regarding the company’s listing status on the exchange. Nasdaq originally notified Urban One of its decision to begin proceedings to potentially delist the company’s securities because it had failed to comply with
listing requirements by not filing quarterly reports with the Securities and Exchange Commission for the first and second quarters of 2023. Urban One has been late with quarterly reports since it discovered problems with its former independent accounting firm’s valuation of its investment interest in MGM National Harbor, which the company sold for cash proceeds of approximately $136.8 million on April 21, 2023. Urban One has since dismissed that accounting firm and hired Ernst & Young LLP as its independent accounting firm. Nasdaq’s granting the stay means that the company’s shares will not be delisted before the outcome of the hearing scheduled for November 30. Urban One says it anticipates filing the delinquent reports prior to that date.
financial reports with the Securities and Exchange Commission. Urban One says it intends to timely request a hearing before a Nasdaq Hearings Panel and that request will automatically stay any suspension or delisting action through October 20, 2023. The company will request that the stay be extended through the hearing and the expiration of any additional extension period granted by the Hearings Panel through March 26, 2023. There’s no assurance that the Hearings Panel will grant the additional extension or that Urban One will be able to regain compliance by the end of any additional extension period. The company is late with its quarterly financial reports for the first and second quarters of 2023. As previously reported, this comes as the result of the company dismissing its previous independent registered public accounting firm BDO USA, LLP and hiring Ernst & Young LLP.
Securities and Exchange Commission. Urban One has disclosed that it has been unable to file the reports in a timely manner due to the change of its independent registered public accounting firm. The company was granted 180 days to come into compliance by Nasdaq or face delisting and Urban One says it anticipates it will be able to file the reports in question before the deadline of September 27, 2023.
Q3 of 2022. For the fourth quarter of 2022, net revenue was approximately $132.6 million, an increase of 1.6% from the same period in 2021. The company reports operating income of approximately $14.3 million for the period, compared to approximately $20.3 million for Q4 of 2021. Broadcast and digital operating income was approximately $47.6 million, an increase of 7.9% from the same period in 2021. Net income was $856,000 compared to approximately $5.3 million in net income for the same period in 2021. The company has yet to file its operating results for Q1 of this year, but its preliminary results from the quarter show same station radio segment revenue up 2.0% on a same station basis.
prior to the date of the notice. Salem now has a compliance period of 180 calendar days in which to regain compliance for the minimum bid price requirement. That expires on December 20, 2023. To regain compliance, the minimum bid price of the Common Stock must meet or exceed $1.00 per share for a minimum of 10 consecutive business days at any time prior to the compliance date. In its filing with the Securities and Exchange Commission, Salem says it intends to monitor the closing bid price of the Common Stock and may, if appropriate, consider implementing available options to regain compliance with the minimum bid price requirement under the Nasdaq Listing Rules.
chairman, president and CEO David Field; $850,000 to EVP, strategic initiatives and CFO Richard Schmaeling; $500,000 to EVP and COO Susan Larkin; $250,000 to president, podcast and streaming and chief digital officer J.D. Crowley; and $600,000 to EVP, general counsel and secretary Andrew Sutor IV. These retention awards are intended to be in lieu of an annual bonus with respect to 2023.
Resort Casino Host Community Agreement with the City of Richmond, Virginia, to be the city’s preferred casino gaming operator subject to certification by the Virginia Lottery Department and a local referendum. The planned project is a $562 million world-class entertainment and gaming venue.
delist the company’s common stock pending completion of applicable procedures. Trading of Audacy’s common stock on the NYSE is suspended but the common stock will continue to be able to be traded over the counter. Audacy says it intends to appeal this determination by the NYSE by filing a written request within 10 business days after receiving the notice. Audacy chairman, president and CEO David J. Field says, “Over the past few years, we have taken a number of transformational actions to give Audacy a leading, differentiated, and scaled position in the dynamic audio space, including podcasting, streaming audio, and our leadership presence across the country’s largest markets and our unrivaled strength in sports and news radio. While we are disappointed by the NYSE’s decision, we are hopeful we will find our way back to the exchange later this year as we execute our action plans which include a reverse stock split to satisfy NYSE rules, the continued execution of our liability management plans and working with our financial advisors to refinance our debt. Further, as macroeconomic conditions stabilize, we believe we will benefit from a general market recovery and will be able to capitalize on our investments in strategic transformation that position Audacy well for the future.”
compliance with the Nasdaq Listing Rule, the Company’s common stock will be subject to delisting. Under the Nasdaq rules, the company has 60 calendar days to file the 2022 Form 10-K or to submit to Nasdaq a plan to regain compliance with the Nasdaq Listing Rule. If Nasdaq accepts the company’s plan, then Nasdaq may grant the Company up to 180 days from the prescribed due date for filing the 2022 Form 10-K to regain compliance. If Nasdaq does not accept the company’s plan, then Urban One will have the opportunity to appeal that decision to a Nasdaq Hearings Panel. The company says it is working diligently and expects to file its 2022 Form 10-K within the 60-day period. Previously, Urban One notified the SEC that it had identified material weaknesses in its internal control over financial reporting and as a result, expected some of its internal controls over financial reporting and disclosure controls would be ineffective as of December 31, 2022. The Annual Report on Form 10-K for 2022 will describe these material weaknesses, and the company is implementing plans to remediate them.”