Cumulus Enters Nasdaq Appeal Hearing Over Stock Price

Cumulus Media has received notice from Nasdaq that the bid price of the company's Class A common stock has closed below $1.00 per share for the last 180 business days, and has not regained compliance to remain listed. Now the only thing standing between the company and a Nasdaq deslisting is a successful appeal. Cumulus has scheduled an appeal hearing where a Nasdaq panel will consider an additional matter relating to the minimum bid price requirement.

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Here is an update

I don't see why an appeal should succeed. I imagine the basis would be that management asserts they can get the stock back into compliance. Considering they've already done a reverse stock split and have had almost a year to improve financial performance, this is unlikely.

The stock is headed for de-listing and the company will eventually restructure, most likely through bankruptcy when most, if not all, of the shareholders equity will be given to debt holders.

The truth is this is not a stock that benefits from being listed on the main exchange. No one is going to wake up one day and buy this stock. Most of the current trading has been internal. If they get delisted, they can always apply to go back if and when the situation changes. Until then, it's just a beauty contest that's not very pretty.

This company has to do two things: Demonstrate it can get its debt under control, and more importantly, create some new products that will excite investors and show a path to growth. The lack of the latter is what's hurting the stock price more than the debt, in my opinion.