Salem Media Group will voluntarily withdraw its Class A Common Stock from the Nasdaq Global Market in 2024. The company plans to initiate the delisting process by filing with the Securities and Exchange Commission by January 8, which would end Salem’s stock trading on the Nasdaq around January 18.
Furthermore, Salem intends to suspend its reporting obligations.
Salem says the move is anticipated to result in considerable financial savings for the company, reducing operational costs and time devoted by management to compliance and reporting activities.
To ensure continued availability of its Class A Common Stock for trading, Salem is taking steps to move its shares to the OTCQX Market or another market operated by OTC Markets Group Inc. The expectation is to transition by January 19, subject to the approval of OTC Markets. Just days prior, Salem secured a $26.0 million asset-based revolving credit facility. This new 3-year agreement with Siena Lending Group replaces the previous arrangement with Wells Fargo Bank.
The company also reached an agreement to transfer ownership of Regnery Publishing to Skyhorse Publishing. Specific details, including the financial terms of the transaction, were not disclosed. Revenue dropped 17.5% to $4.6 million for Salem’s publishing arm in Q3, a decrease from $5.5 million in the corresponding quarter of 2022. This decline was notably impacted by Regnery’s performance, which experienced a substantial 19.2% decrease in sales, amounting to $2.6 million.
This sale marked Salem’s second major divestiture, following the $30 million sale of Salem Church Products to Gloo, LLC earlier in October, as the company makes significant financial moves to shed weight.
Look at Havard’s leadership.
Denial, denial and denial.
Time to be founder of Denial Anonymous”.
Yeeeeeeeeeeeeeeah… I’m gonna need them to stop lying about their motivation. This isn’t being done in order to save them money or time. This is being done because their stock price is currently 39 cents — down from 40 cents in the last minute, literally as I write this.
Come on, now.
Oh, by the way: this “voluntary delisting” news comes just a couple days after Salem signed a new lending agreement. I’m sure they expected that to boost their stock — and it did a little at first. But not enough to get above the one dollar mark.
https://rbr.com/salem-secures-a-new-lending-agreement/
In other words, Salem’s a penny stock, they know they were going to be delisted anyway, so they decided to get out before they had no other choice.
Exactly…