Los Angeles parent company Emmis Communications may be on the verge of being delisted by NASDAQ. Emmis was forced to request a hearing to prevent this scenario after recently receiving a “notice of delisting” from NASDAQ.
Indiana Business Journal has the backstory:
NASDAQ served notice to Emmis last Aug. 31 that its stock had closed below the exchange’s minimum $1-per-share requirement for 30 straight business days.
To regain compliance, Emmis shares needed to rise to the $1 minimum for at least 10 consecutive business days between then and Feb. 27. The stock managed to reach a closing price of 92 cents per share in mid-November but never climbed higher.
As the IBJ notes, without NASDAQ, Emmis would be relegated to penny-stock status. This is the third time in recent years Emmis has faced this scenario. Not good, especially with all of Los Angeles‘ successes as of late. They’re one of the few non-depressing media stories in town. It would be a crime to see their financial backing gutted like the rest of our local print media.
Not to worry too much though. Sources tell IBJ Emmis can still pull off a “reverse stock split” to boost stock prices and save itself from being delisted.