For a second time this year Beasley Broadcast Group has received notice from Nasdaq that its stock is not in compliance with listing standards and so faces delisting.
Beasley’s stock has been under $1 per share for at least the last 30 days. That triggered the delisting notice, according to a filing Beasley made to the U.S. Securities and Exchange Commission.
Beasley has 180 days to regain compliance. If the 61-station group doesn’t do so by April 10, 2024, the company could be eligible for an additional 180-day compliance period under certain conditions, according to Nasdaq. If the exchange still wants to delist the stock after that, the company would have a chance to appeal.
The broadcaster was given a similar warning in April of this year but did regain compliance in August when its stock price rose to over $1 for a short period.
Beasley’s price has since slid, with the stock at roughly 80 cents on Monday afternoon. The notice has no immediate effect on the listing of the stock, which continues to trade on the Nasdaq Global Market under the symbol BBGI, according to the company. However, investors holding shares after a delisting would only be able to sell them OTC.
The company told the SEC it intends to actively monitor the closing bid price of its common stock and will consider all reasonable available options to regain compliance with the Minimum Bid Price Requirement.
Its options could include transferring the listing to the Nasdaq Capital Market and/or seeking stockholder approval to effect a reverse stock split, according to the company.
Beasley’s financial struggles have caused some observers to wonder about a possible bankruptcy filing. The media company had $283 million in outstanding debt at the end of June, according to its second quarter 2023 earnings statement.
Radio industry blogger Jerry Del Colliano wrote on Monday that Beasley will have a difficult time avoiding bankruptcy. “Like other troubled radio groups, Beasley has too much debt. The same problem that brought down Cumulus first, then iHeart and Audacy next before the end of the year,” Del Colliano posted. Del Colliano, editor of the online Inside Music Media newsletter, has been skeptical of Beasley’s plans to reverse course. “Bankruptcy appears to be baked in to Beasley for circumstances out of their control and some within – the fate of the radio industry drowning in debt and the inability to service that debt and perform like a growth medium.”
