Shares of Audacy were trading for nine cents per share on Tuesday. That was a drop of 13% in the sales price. It caused the New York Stock Exchange to take action.
Trading of the company’s stock has been suspended per its request. The New York Stock Exchange has the right to delist any company traded on its floor when share prices fall to “abnormally low levels.” That is what is happening right now.
Audacy issued a press release on Tuesday to say it would appeal this decision. The company will have ten days to file a written appeal. If that is successful, traders can resume making deals involving shares of Audacy. If it is not, the company has said it will seek to move to a different exchange.
“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,” CEO David Field said. “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.”
Audacy has been in hot water with the New York Stock Exchange since last year. The NYSE requires every listed company to have a closing price no lower than $1 over thirty days of trading. That has not been true for Audacy since last July.
The moves necessary to get Audacy back in compliance with NYSE rules require shareholder approval. Next week, a shareholder vote will be taken on a reverse stock split. It would reduce the number of available Audacy shares and raise the price of each individual share.
Earlier this month, Inside Radio reported that Audacy is expected to begin negotiations with lenders “aiming for both relief from existing loan covenants and for an extension of its November 2024 term loan maturity.” If that is unsuccessful, it is expected that a major financial restructuring would be the company’s next move.
