Armstrong Exit from Urban One Could Lead to Delisting

RADIO ONLINE | Thursday, December 31, 2020 | 1:43pm CT

Urban One

Urban One received notice from The Nasdaq Stock Market on December 28 -- that as a result of the resignation of Geoffrey Armstrong as a director, effective November 23 -- the company was no longer in compliance with Nasdaq's audit committee requirements since Armstrong had been a member of the audit committee. Nasdaq Marketplace Rules requires that the audit committee consist of three independent directors. As a result of Armstrong's resignation, the number of directors serving on the audit committee of the company's board has been reduced to two.

The notice from Nasdaq indicated that Urban One is provided a cure period until the earlier of the company's next annual meeting of stockholders or November 30, 2021 to regain compliance with this requirement. If the next annual shareholders' meeting is held before May 31, 2021, then the company must evidence compliance no later than May 31, 2021. If Urban One does not regain compliance within this cure period, its Class A and Class D common stock would be subject to delisting, which could be appealed.