Audacy has been facing a potential delisting of its stock on the New York Stock Exchange, and the company has devised a plan to return its price to a compliant status with the exchange.

In a regulatory filing, Audacy shared it intends to implement a reverse stock split after its shareholder’s meeting on Wednesday, May 24th.

The New York Stock Exchange requires companies to maintain an average closing price of at least $1.00 for 30 consecutive days of trading. Audacy’s price hasn’t closed above that threshold since July 5th of last year.

The exchange does grant grace periods, and the company was given until February 1st to return to compliance. However, as of Monday, the stock price closed at 11 cents per share.

“While price of our common stock might meet the continued listing requirements for the NYSE initially, it cannot be assured that it will continue to do so,” Audacy admitted in the filing.

Audacy also claimed that implementing a reverse stock split could potentially make it more difficult for investors to buy and sell their shares.

A reverse stock split could also be a risky endeavor. Should Audacy’s market cap fall below $15 million during 30 consecutive days of trading, the NYSE could still delist the company. With the move, there would be “no guarantee that we will be in compliance with these financial criteria requirements in future periods.”

Last August, a report surfaced that Audacy would enter bankruptcy proceedings with its potential delisting looming, which the company strongly denied at the time.

“That statement is categorically and unequivocally untrue,” Audacy President and CEO David Field said in an internal memo obtained by Barrett News Media at the time. “Audacy intends to pursue all applicable remedies for false and defamatory statements meant to cause damage to Audacy, its employees, and its stakeholders to the fullest extent of the law.”

In the fourth quarter of the fiscal year, Audacy saw a 0.8% decline in revenue, but still concluded 2022 with a 3% increase.