It finished Wednesday’s trading session on the Nasdaq Global Market exchange at exactly $0.2699 and in immediate after-hours trading sank by 24%. Why? Investors likely learned of a SEC filing made following the close of trading indicating that Cumulus Media has decided to shift its publicly traded shares to the OTC Markets as a delist looms.
The decision to shift “CMLS” to the “OTCQB” market tier, considered to be a home of riskier investments than companies trading on the NYSE or Nasdaq markets, was precipitated by notification from The NASDAQ Stock Market on Wednesday (4/23) indicating that “CMLS” would be delisted — with trading suspended — with the Opening Bell on Friday, May 2.
Cumulus had an option to prevent that from happening. According to Nasdaq rules, the company led by CEO Mary Berner which will reveal its first quarter 2025 financial results prior to its final trading day on Nasdaq (May 1 at 8:30am Eastern) had an opportunity to request an appeal of the delisting determination before the Nasdaq Hearings Panel. The appeal would need to be submitted by April 30.
But, Cumulus decided to move its stock to the OTC market “rather than investing time, effort, and cost into developing a plan to remain on Nasdaq,” a company representative told Radio Ink and Radio + Television Business Report on Wednesday afternoon.
The Cumulus representative indicated that the “CMLS” ticket symbol will remain in place and that the move from Nasdaq does not affect the company’s operations. “Cumulus remains focused on executing its strategy and driving long-term growth,” the company spokesperson said.
For CFO Frank López-Balboa, filing of a Form 25 Notification of Delisting with the Securities and Exchange Commission will put the wheels in motion on Cumulus’ next chapter.
I’m out of radio and don’t care much any more. But Seriously, I don’t know how anyone in this company/corporate can look at a station/staff member and talk about accountability. Ever! Tell them to look in a mirror.
They are delisted. 20 cents a share at COB today. How the heck does Mary B take a paycheck after this type of performance?. Nuts to me.
Hey, just wanted to drop a quick note to say I really appreciate Radio Ink for keeping us updated on the Cumulus Media situation. It’s great to have reliable information about such significant changes in the industry. Keep up the good work! 🌟
Sadly, that says it all.
Stock Recap of the big 3 in Radio
AUD- delisted
CUM- delisted
IHRT- delisted NEXT!!!
ALL 3 LOSERS!!!