Emmis Board Votes to Delist Class A Shares from NASDAQ

RADIO ONLINE | Friday, April 24, 2020

Emmis Communications

In an 8K filing with the SEC, the board of directors for Emmis Communications voted to voluntarily delist the company's Class A common stock from the NASDAQ Stock Market on Thursday, April 23. The company notified NASDAQ of the board's move on Friday, April 24. Emmis intends to file with the SEC, on or about May 4, a Form 25 requesting the delisting and deregistration of its Class A common stock under Section 12(b) of the Exchange Act.

After the effectiveness of the Form 25, the company intends to file with the SEC, on or about May 14, a Form 15 requesting the deregistration of its Class A common stock under Section 12(g) of the Exchange Act and the suspension of the company's reporting obligations under Sections 13 and 15(d) of the Exchange Act. After delisting, the company's Class A common stock may be eligible for the OTC Markets Group. Emmis said it can provide no assurance that trading in its Class A shares will continue on the OTC Markets Group or otherwise.

Additionally, on Wednesday April 22, Emmis Operating Company and MediaCo Holdings, entered into a Loan Proceeds Participation Agreement (LPPA) in which Emmis agreed to use a portions of the proceeds of the loan Emmis received under the Paycheck Protection Program to pay wages of employees leased to MediaCo under an Employee Leasing Agreement, dated November 25, 2019, between Emmis and MediaCo. Emmis agreed to waive up to $1.5 million in reimbursement obligations of MediaCo to Emmis under the Leasing Agreement until the PPP Loan is forgiven.

In November, 2019, Emmis Communications Emmis Communications and Standard General closed on the transfer of the licenses of Emmis' 4.2kW Urban AC WBLS-FM and 6.7kW Rhythmic CHR WQHT-FM (Hot 97) in New York for $91.5 million cash to its new public company Mediaco Holdings.