Earlier today, the New York Stock Exchange informed Audacy that its stock was not in compliance with the market’s listing standards, and suspended trading.
Audacy was informed that due to its “abnormally low selling price”, the exchange was suspending its listing and has initiated the process of delisting the stock. When it was suspended, Audacy’s stock price was at $0.09 per share.
In an internal memo obtained by Barrett News Media, Audacy CEO David Field said the company would “appeal the NYSE’s decision”, noting that it previously planned to ask shareholders to approve a reverse stock split at its meeting next week.
“During the appeal period, we will remain an NYSE-listed company but NYSE trading will
be suspended and our common stock will be traded over the counter. We expect the
appeal process to take place over the Summer,” Field said. “We are hopeful we will find our way
back to the exchange later this year as we execute our action plans which include the
reverse stock split, the continued execution of our liability management plans and
working with our financial advisors to refinance our debt. If the appeal is ultimately
unsuccessful, we may move our stock to another exchange or trading platform.
“While this news is disappointing, it has zero impact on Audacy’s ability to serve
listeners and customers or run our operations effectively. To be clear, we are
business as usual,” continued Field. “Our radio stations, digital platforms, podcasts, and all other products and services will continue operating normally. We continue to execute a robust
action plan to emerge healthy from current conditions. It’s important to note that our
liquidity was $124 million as of March 31, 2023, and that we have no debt due until July
2024.”
Audacy had been informed in August of last year that it was facing potential delisting by the New York Stock Exchange for its price failing to exceed $1 per share for more than 30 business days. Audacy’s stock price has not closed about that threshold since July 5th of last year.
At the time, the company claimed it would consider “all available options” to return to compliance. It subsequently refuted reports it was approaching bankruptcy.
“I greatly appreciate everyone’s excellent work and dedication to our team, as we all look
forward to being on the other side of these current economic challenges,” Field concluded.