Trading of shares of Audacy’s stock was halted around 2pm today on the New York Stock Exchange.
Audacy stock was trading at 9.36 cents per share at the time of the halt.
In an internal memo, Audacy Chairman/CEO David Field wrote:
This afternoon, the New York Stock Exchange (NYSE) notified us that we are not in compliance with the NYSE’s continued listing standards because our common stock traded at an “abnormally low selling price.” As a result, the NYSE has suspended trading in our stock and will initiate a proceeding to delist our stock from the NYSE. We intend to appeal the NYSE’s decision. As most of you are aware, we are asking our shareholders to approve a reverse stock split at our annual shareholders’ meeting on May 24, 2023. The timing of today’s events is unfortunate since a reverse stock split could have avoided us tripping the NYSE’s “abnormally low selling price” standard.
During the appeal period, we will remain an NYSE-listed company but NYSE trading will
be suspended and our common stock will be traded over the counter. We expect the
appeal process to take place over the Summer. We are hopeful we will find our way
back to the exchange later this year as we execute our action plans which include the
reverse stock split, the continued execution of our liability management plans and
working with our financial advisors to refinance our debt. If the appeal is ultimately
unsuccessful, we may move our stock to another exchange or trading platform.
While this news is disappointing, it has zero impact on Audacy’s ability. to serve
listeners and customers or run our operations effectively. To be clear, we are business as usual. Our radio stations, digital platforms, podcasts, and all other products and services will continue operating normally. We continue to execute a robust action plan to emerge healthy from current conditions. It’s important to note that our liquidity was $124 million as of March 31, 2023, and that we have no debt due until July 2024.Audacy remains the same leading, scaled multi-platform Audio content and entertainment company with an outstanding, unique competitive position across the country’s leading markets. Our premium, exclusive Audio content remains second to none. And we will continue to play offense, investing in people, platforms, technology, content, capabilities, customer service, and growth initiatives as we navigate the challenging ad market conditions that have impacted all forms of media companies.
I greatly appreciate everyone’s excellent work and dedication to our team, as we all look forward to being on the other side of these current economic challenges.
All best,
David