Audacy has put its 1-for-30 reverse stock split into effect.
The company normally trades on the New York Stock Exchange but had seen its Class A share price dwindle to minuscule levels. In May its shareholders approved a reverse split of up to 1-for-30 hoping to avoid the company being delisted by the NYSE but the exchange subsequently suspended trading and began the delisting process, which Audacy said it would appeal. Audacy shares are currently traded in the over the counter market.
Though a common strategy for companies in such circumstances, a reverse split does not guarantee higher or stable share prices and can have negative consequences including market perceptions and the possible effect on liquidity.
The Audacy reverse split reduces the number of outstanding shares of Class A common stock from about 137.5 million shares to 4.6 million shares, with certain exceptions, and of Class B common stock from approximately 4 million to 135,000 shares.
Audacy is the second largest radio company in the United States. In reporting financial results in May the big media company said it was worried that advertising demand is going to get worse this year before it gets better. The company remains heavy with debt.
Marketwatch lists its adjusted stock price as being down 92% over the past year.
