Citing “extraordinary market conditions,” Spanish Broadcasting System announced that NASDAQ won’t be delisting SBS from its exchange for the time being.
SBS, along with other companies, had been warned they would be taken off the NASDAQ in August for being in violation of the exchange’s minimum bid price rule. Companies on the NASDAQ must have their common stock trading at a minimum of $1 per share for 10 consecutive trading days. SBS stock had been trading at below that amount for 30 business days when it received its non-compliance notice.
With NASDAQ now suspending enforcement of its minimum bid price rule until January 19, SBS now has until May 26 to get back in compliance, when the remaining 124 days it had in its grace period are added.
SBS “intends to use all reasonable efforts to maintain the listing of its common stock on the Nasdaq Global Market, but there can be no guarantee that the company will regain compliance with the continued listing requirements, or will be able to demonstrate a plan to sustain compliance in order to avoid delisting from the Nasdaq Global Market,” the broadcaster said in a statement.
Meanwhile, the company said it has paid off an $18.5 million promissory note to BC Media Funding Company II, more than two months before it was due.