Salem Media Group has given formal notice to the Nasdaq Stock Market of its intention to voluntarily delist its Class A Common Stock from the Nasdaq Global Market and to deregister its Class A Common Stock under Section 12(b) of the Securities Exchange Act of 1934.
It allows Salem to avoid a potential delisting procedure — something that was likely to commence given the media company’s time under the all-important $1 threshold.
With Friday’s announcement, Salem currently anticipates that it will file with the Securities and Exchange Commission a “Form 25” Notification of Removal of Listing on or about January 8, 2024, with the delisting of its Class A Common Stock taking effect no earlier than ten days thereafter.
As a result, Salem expects that the last trading day of its common stock on the Nasdaq Global Market will be on or about January 18, 2024. Further, prior to March 29, 2024, Salem intends to file a Form 15 with the SEC to suspend the company’s reporting obligations under Sections 12(g) and 15(d) of the Exchange Act.
For Salem, known for its conservative and Christian-themed programming, it anticipates “significant financial savings” as a result of this decision.
In addition, delisting and deregistration provide several benefits to Salem and its stockholders — including lower operating costs and reduced management time commitment for compliance and reporting activities, it said.
Does this mean Salem stock will no longer be traded? No. Like Audacy Inc., Salem anticipates that its Class A Common Stock will be quoted on an over-the-counter exchange. Specifically, Salem believes it’s shares will trade on the OTCQX or other market operated by OTC Markets Group Inc.
Salem expects its Class A Common Stock to be quoted on the OTCQX Market beginning on or around January 19, 2024, pending approval by OTC Markets.
