Emmis Communications Corp. shares will remain listed on the NASDAQ exchange at least until Aug. 27 under an extension granted by the well-known stock index.
Indianapolis-based Emmis must still meet NASDAQ's listing requirement by having its stock close above the bid price of $1 per share for 10 consecutive trading days, the exchange said Thursday in a public filing.
The extension was granted after Emmis appeared before NASDAQ's Listing Qualifications Panel on April 25 to appeal a planned delisting of the stock.
"We appreciate NASDAQ's ruling and the extension to gain compliance," Emmis said in a prepared statement. "Based on recent corporate actions, we are confident we will meet all listing requirements before the new deadline."
Emmis applied for the extension after it received written notice from NASDAQ on Feb. 28 that it had not regained compliance with the exchange’s $1 minimum-price requirement for continued listing.
NASDAQ served notice to Emmis last Aug. 31 that its stock had closed below the exchange’s minimum $1-per-share requirement for 30 straight business days.
To regain compliance, Emmis shares needed to rise to the $1 minimum for at least 10 consecutive business days between then and Feb. 27. The stock managed to reach a closing price of 92 cents per share in mid-November but never climbed higher.
Without NASDAQ, Emmis shares would be relegated to penny-stock status on the over-the-counter bulletin board or the pink sheets. Once that happens, shares are harder for investors to buy and sell.
Emmis has been on the edge of losing its NASDAQ status for several years. The company was previously warned about possible delistings in November 2010 and in October 2009, but its stock rebounded both times to escape danger.
Until Friday afternoon, Emmis stock had failed to close below $1 per share since last July. It closed Friday at $1.04 per share, up 5 cents on the day. Shares have risen 20 cents since Thursday morning after Emmis announced two deals that will give it a $92 million cash infusion.