The need for Urban One to have a little more time to submit its quarterly earnings reports for 2024 and its full-year 2023 results is no secret. With the July 2023 dismissal of BDO as its outside accounting firm, and the subsequent hiring of EY to take over, a restatement of quarterly financial reports for several quarters was needed.
With Urban One’s FY 2023 report still not filed with the Securities & Exchange Commission, the Nasdaq Stock Market has notified the company that its stock could be delisted. The key word here is could.
The company led by Alfred Liggins III and formed as Radio One by Cathy Hughes with the purchase of WOL-AM in Washington, D.C., on April 8 a letter from Nasdaq’s Listing Qualifications Department.
In the letter, Urban One was told it was not in compliance with requirements of Nasdaq Listing Rule 5250(c)(1) — as a result of not having timely filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2023, with the SEC.
What is the remedial action Urban One can take to prevent it from being booted from Nasdaq?
Pursuant to the Nasdaq Listing Rules, Urban One has been afforded 60 calendar days, or until June 7, 2024, to submit a plan to regain compliance. If Nasdaq accepts the compliance plan, Nasdaq may grant the company an exception of up to 180 calendar days from the filing’s due date to regain compliance.
Urban One intends to have its FY 2023 fiscal report finalized and submitted to the SEC within the 60-day period ending June 7, it says.
This would eliminate the need for the company to submit a formal plan to regain compliance.
In after-hours trading on Friday evening, UONE was trading at $2.31, up from Friday’s closing price of $2.22.
