Charter Communications announced Friday that it received a delisting notice from NASDAQ on April 14, because its Class A common stock had closed below $1 per share for 30 consecutive business days.
Under NASDAQ rules, the company has 180 days—until Oct. 13—to regain compliance by closing at or above $1 per share for 10 consecutive business days.
If the stock doesn’t rebound by then, Charter may apply for continued listing if it meets the NASDAQ’s initial listing requirements other than the minimum-price rule at the time, in which case it will be granted up to an additional 180 calendar days to regain compliance.
Charter said neither the debt covenants applicable to the company or its subsidiaries, nor its ongoing operations are directly affected by the company's noncompliance with the listing rule.
In April 2005 Charter received a delisting notice because it fell one director short of a NASDAQ minimum requirement that at least three independent directors serve on its audit committee. As a result it named former TechTV chairman and CEO Larry Wangberg and David Merritt, managing director of investment bank Salem Partners, to the committee. Wangberg was later replaced by a technology consultant, RANND Advisory Group managing director Nathaniel Davis.
In March 2003, Charter’s stock price stayed under $1 per share for 21 consecutive business days, before rising above a buck on April 1.
Even if stocks are delisted from NASDAQ, they typically are traded on the over-the-counter bulletin board, an electronic exchange that has less-stringent reporting requirements.