Previously here at RouteNote we somehow received a lot of stick for talking about Sirius and their possible delisting from the NASDAQ. The time is now upon us and Sirius are very close to being delisted.
According to PR Newswire:
SIRIUS XM Radio Inc. (Nasdaq:SIRI) today announced that The NASDAQ Stock Market LLC (“NASDAQ”) has scheduled a hearing on April 29, 2010, at which the Company will be afforded the opportunity to request continued listing on The NASDAQ Global Select Market pending its return to compliance with NASDAQ’s $1.00 per share bid price requirement.
The hearing before a NASDAQ Listing Qualifications Panel (the “Panel”) stays all action by NASDAQ. Under NASDAQ’s current Listing Rules, the Panel may grant the Company up to an additional 180 days from the date of the staff’s most recent notification of non-compliance, or through September 13, 2010, to comply with the NASDAQ bid price requirement. The Company does not expect to receive a written decision of the Panel for up to 45 days following the hearing.
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. While the authority granted to the board expires on June 30, 2010, the Company will seek approval from stockholders at its upcoming annual meeting to extend that authority through June 30, 2011. 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.
Sirius has done quite well as there stock has been as high as $1.18, but as of today it is only $0.842. A lot of hard work ahead of Sirius if they want to stay listed on the NASDAQ!
XM founder Gary Parsons is out as chairman at Sirius XM radio, bringing the company in line with Nasdaq rules about independent board members. LA Times publisher and CEO Eddy W. Hartenstein replaces him as non-executive chairman.
Canned quote:
“I could not be more proud of everything that has been accomplished in satellite radio,” said Gary Parsons. “It has been a true honor to serve the stockholders of these companies since founding through delivery of an unparallel service to millions of loyal and devoted subscribers. While it has been a privilege to serve SIRIUS XM as Chairman and to have guided the company successfully through the merger of SIRIUS and XM, I believe now is the right time to step aside. As SIRIUS XM, we have achieved significant synergies while bringing together two incredibly talented teams and unique service offerings. Moreover, despite the challenging economic environment, we have begun to generate positive cash flow and have substantially improved our financial condition. While challenges remain, I’m confident that under the direction of Mel Karmazin and with the assistance of Eddy Hartenstein, SIRIUS XM will continue to grow and flourish.”
More from the AP:
NEW YORK (AP) — Sirius XM Radio said Thursday that Gary Parsons has resigned as chairman and a member of the board and will be succeeded by Los Angeles Times publisher and CEO Eddy W. Hartenstein as non-executive chairman.
Parsons founded XM Satellite Radio and was its chairman before the company’s merger with Sirius. His replacement with an outside director brings the company in line with Nasdaq Stock Market rules on independent board members.
In a statement issued by the company, Parsons said “now is the right time to step aside,” following the merger of Sirius and XM. He said he was proud “of everything that has been accomplished in satellite radio.”
Parsons said the combined company has begun to generate cash flow and improve its financial health despite the economic downturn. He did not indicate any future plans.
CEO Mel Karmazin said Parsons was a pioneer who steered the company in the right direction including the merger.
Hartenstein was a director of XM Satellite Radio Holdings Inc. and has been served on the Sirius XM board since July 2008. The former DirecTV chairman and CEO became the Times’ publisher in August 2008.
Sirius shares closed at 66 cents. Which is still a long way of the $1.00 they need to stay on the Nasdaq.
SIRIUS XM Radio Inc. (Nasdaq: SIRI) announced today that it received notice from the Nasdaq Stock Market on September 15, 2009 that its common stock had closed below $1.00 per share for 30 consecutive business days and is therefore not in compliance with the Nasdaq Marketplace Rules.
Most people have announced that this is the end of traditional online radio as we know it. Online radio is an area in which is probably behind most others in terms of innovation, but with Last.fm, Pandora and online music streaming services why listen to an online radio where I have no choice in what I listen too, compared to streaming where I get to choose what I listen too.
