The broadcast media company with a stake in eSports has received written notice from the Listing Qualifications Department of the Nasdaq Stock Market that its Class A common stock has failed to make the minimum bid price requirement necessary to keep it on the exchange.
The warning was sent to Beasley Media Group, which is traded as “BBGI” on Nasdaq as Beasley Broadcast Group, its previous operating name, on Friday (10/13).
For the last 30 consecutive business days, the bid price for the company’s common stock has closed below $1.
On August 30, a $1.01 closing price was seen by BBGI. Since then, it has failed to pass that all-important threshold, with trading as of 2:15pm Eastern on Monday at $0.8475.
To be clear, the continued inclusion on the Nasdaq Global Market pursuant to Nasdaq Listing Rule 5450(a)(1) — the “Minimum Bid Price Requirement” — gives Beasley a cure period. As such, there is no immediate effect on the listing of “BBGI.”
But, Beasley has until April 10, 2024, to regain compliance with the minimum bid price requirement. How can this be done? To regain compliance, the closing bid price of the company’s common stock must be at least $1.00 per share for a minimum of ten consecutive business days as required under Nasdaq Listing Rule 5810(c)(3)(A) (unless the Nasdaq staff exercises its discretion to extend this ten-day period pursuant to Nasdaq Listing Rule 5810(c)(3)(H)) during the 180-day period prior to April 10, 2024.
If the company does not regain compliance by that date, Beasley Media Group may be eligible for an additional 180-calendar day compliance period by transferring the listing of its common stock to the Nasdaq Capital Market and satisfying “certain requirements.”
That’s good news, as it effectively gives Beasley one year to regain compliance, putting it in a more favorable position than industry peer Audacy Inc., which was booted from Nasdaq for compliance, engineered a 1-for-30 reverse stock split and today sees its shares priced at $0.50 while trading on a OTC “pink sheet.”
In a SEC filing made by Chief Financial Officer Marie Tedesco, Beasley said 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. This includes transferring “BBGI” to the Nasdaq Capital Market.
It also sees Beasley suggest that it is considering a stockholder-approved reverse stock split.
