Sirius XM has just put out a press release acknowledging that it has received a letter from NASDAQ “stating that the Company has not regained compliance with the $1.00 minimum closing bid price requirement for continued listing on The NASDAQ Global Select Market.”
The satellite radio company says it will ask for a hearing with the NASDAQ Listing Qualifications Panel, at which it will ask to stay on the index “pending its return to compliance.”
“As a result, the NASDAQ staff’s letter has no effect on the listing of SIRIUS XM’s common stock at this time,” Sirius assured its investors.
“SIRIUS XM is one of the most liquid securities on The NASDAQ Global Select Market;” Sirius XM CEO Mel Karmazin added. “We have a large investor base consisting of both individual and prominent institutional stockholders; and our equity capitalization is greater than approximately 92% of the companies listed on The NASDAQ Global Select Market. We are committed to remaining listed on The NASDAQ Global Select Market.”
As we’ve reported, Sirius stock was back on the dollar menu for a while, but it has definitely fallen into the below 90 cent dumps over the last few days. That earlier rise in fortunes probably helped the company avoid a reverse stock split, in which the number of shares are reduced and the price increased. Here’s what Sirius XM says about a reverse stock split now:
“The Company intends to take all necessary steps to maintain the listing of its common stock on The NASDAQ Global Select Market. The Company’s stockholders have granted the Company’s board of directors the discretion to effect a reverse stock split, which would bring the Company into compliance with the NASDAQ bid price requirement. However, the board of directors intends to effect the reverse stock split only if it determines the action to be in the best interests of stockholders.”