Citadel Broadcasting is the latest radio conglomerate facing a possible de-listing from a major trading market – in this case, the New York Stock Exchange.
Citadel acknowledges the warning in an after-hours press release issued Friday evening. NYSE warns companies that they could be delisted if they trade below $1.00 for 30 days. The last time CDL met the requirement was August 11, when it closed at $1.09. CDL stock opened at 87 cents a share this morning.
In Friday’s press release, Citadel pledges to “cure the deficiency and to return to compliance” by bringing stock prices back up above the $1.00 minimum.
The financial website Investopedia explains that delisting doesn’t always mean a company is in dire straits, but it is still a cause for concern:
Just as there are plenty of private companies that survive without the stock market, it is possible for a company to be delisted and still be profitable. However, delisting can make it more difficult for a company to raise money, and in this respect, it sometimes is a first step towards bankruptcy.
Locally, Citadel owns four stations in the Syracuse market: CHR 93Q (WNTQ), active-rocker 95X (WAQX), AC Lite Rock 105.9 (WLTI) and sports-talker ESPN Radio 1260 (WNSS).
Citadel is not alone in facing possible de-listing. About a month ago, NASDAQ served a similar warning to Regent Communications. While Regent stock remains below $1.00, it got pretty close on Friday, closing at 97 cents.