In a preliminary notice to shareholders filed with the Securities and Exchange Commission, Audacy intends to vote on a reverse stock split to keep the company on the New York Stock Exchange. The Notice of Annual Meeting of Shareholders was filed on March 24, with the full notice expected to release on April 11.
Audacy stock has tumbled in the past year: the company closed at $2.89 on April 1, 2022. As of writing on March 23, 2023, the stock was valued at $0.11. The proposed vote would take place on May 24.
In the preliminary copy, Audacy states, “We believe that if the Reverse Stock Split proposal is not approved by our shareholders, it is likely that our Class A Common Stock will be delisted from the NYSE.” On August 1, 2022, the NYSE informed Audacy they were underneath the minimum monthly closing price of $1 per share.
To get their Class A Common Stock to that threshold, the company seeks a shareholder vote that could combine one new share for every two shares all the way up to one new share for every 30 existing shares. Cash payments will be given for fractional shares. If the reverse stock split is approved, the price must go above $1 and remain there for 30 days to fulfill the market obligation.
Audacy is also using the reverse split to attract investors, writing, “In addition, we believe that the low per-share market price of our Class A Common Stock impairs its marketability to, and acceptance by, institutional investors and other members of the investing public and creates a negative impression of the Company.”
Audacy warns shareholders, “We cannot assure you that the Reverse Stock Split will increase our stock price and for the required time period.” If the stock remains below $1 or falls below that mark in the 30 days after, the company would in all likelihood be removed from the NYSE.