Regent Communications is at risk of being delisted from the NASDAQ stock market, according to business newspaper report in Cincinnati, the home of Regent corporate HQ. The owner of 62 stations -- including four in Utica-Rome -- has been trading below NASDAQ's $1.00 minimum for more than 30 consecutive trading days.
The Cincinnati Business Journal says NASDAQ has officially put Regent on notice, giving the company 180 calendar days (yes, calendar days, not trading days) to shape up or ship out. In order to stay listed, Regent must trade above the $1.00 mark for at least 10 consecutive trading days before February 9, 2009.
If Regent fails to meet that requirement, it can file an appeal for a deadline extension. According to a press release issued by Regent, "alternatively, the Company can apply to transfer its securities to The Nasdaq Capital Market," providing certain other conditions (besides the trading price) are met. Either option would give Regent additional time to bring the price back up to par, but
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.
R&R points out that Citadel (NYSE symbol: CDL) could soon be in a similar situation, closing at 99 cents Friday. Since July 9th, CDL has closed above $1.00 only twice: on July 23 and August 11.
Regent Communications owns four Utica-Rome stations: country Big Frog 104 (WLZW), adult contemporary Lite 98.7 (WLZW), Oldiez 96 (WODZ) and talker Newsradio 950 (WIBX). The company also has clusters in Albany and Buffalo, and formerly owned a cluster in Watertown.
Citadel owns four stations in Syracuse: CHR 93Q (WNTQ), rocker 95X (WAQX), adult contemporary Lite Rock 105.9 (WLTI) and sports-talk ESPN Radio 1260 (WNSS).