Report: Sirius XM May Seek NASDAQ Extension
| RADIO ONLINE | , , | :am CT |
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Sirius XM Satellite Radio is expected to seek an extension from NASDAQ to address its stock price, after failing to meet deadline on Monday to increase its shares above $1.00 in order to retain its listing. So far this year, the satcaster's stock has gained more than 50%, but still too low to meet NASDAQ requirement that its shares trade above $1.00 for 10 days in a row by March 15.
Barrington Research analyst James Goss told Reuters, "There is some appetite for the securities of this company. Therefore, it's seemingly ridiculous to think that they would be de-listed because of the price per share, when the enterprise value is effectively in the $10 billion ballpark."
On a conference call last month to address its Q4 earnings, Sirius CEO Mel Karmazin said, "There is absolutely no concern about Sirius XM continuing to be listed and traded on NASDAQ and if successful in meeting NASDAQ's dollar bid requirement, we have no plans to execute a reverse split."
