Stockholders Approve Audacy Reverse Stock Split.
To satisfy New York Stock Exchange rules, Audacy will execute a reverse stock split that will reduce the number of its outstanding shares and increase its share price accordingly. During the company’s annual shareholders meeting on Wednesday, shareholders voted in favor of the reverse stock split in an effort to regain compliance with the exchange’s minimum bid price rules.
NYSE requires companies to have a minimum average closing price of $1.00 per share over 30 consecutive trading days. The last time Audacy’s stock price closed above one dollar was July 5, 2022.
Audacy is now working to determine the range of the split and other details, and expects to make a formal announcement next week, after the Memorial Day holiday weekend.
Audacy first ran afoul of NYSE’s continued listing standards on Aug. 1, 2022, when it received a warning that it was not in compliance and had six months to resolve the issue. But Audacy was unable to get out of the NYSE jam by the time that six-month cure period expired Feb. 1. Since Audacy needed to get shareholder approval for a move to regain compliance, the deadline was extended to its annual shareholders meeting.
That took place via a live webcast on Wednesday. It occurred eight days after the exchange suspended trading of Audacy’s stock and began proceedings to delist it after shares of Audacy dropped 13% to nine cents, tripping the NYSE’s “abnormally low selling price” standard. The stock now trades over the counter as “AUDA.” Shares closed down 5% on Wednesday at six cents.
When a company completes a reverse stock split, each outstanding share of the company is converted into a fraction of a share. For example, if a company declares a one for ten reverse stock split, every ten shares that an individual owns are converted into a single share. But with a stock currently trading for six cents a share, the multiple will be quite a bit higher. Those details are expected to be announced next week.