By: E&P Staff
Already on notice that its stock price is too low to be listed on the New York Stock Exchange (NYSE), Sun-Times Media Group (STMG) disclosed after markets closed Friday it has been warned its market capitalization is below listing standards.
Companies listed on the NYSE are required to maintain an average total market capitalization of at least $75 million. STMG said the NYSE had notified it that in a consecutive 30-day trading period its market cap had fallen below that level.
STMG (NYSE: SVN) stock ended trading Friday down 4 cents to 76 cents, with an indicated market capitalization of $61 million.
Under NYSE procedures, STMG said, the company has 45 days to submit a plan to get into compliance within 18 months.
“The company intends to submit a plan that will demonstrate compliance with the listing standards within the required time frame,” STMG said in a statement.
Two weeks ago, NYSE notified STMG that it was out of compliance for Big Board listing because its stock had closed below $1 a share for 30 consecutive days. Under NYSE rules, STMG has six months to get its share price and the 30-day average closing price above $1.00. In that period, the stock will continue to be listed.
The publisher of the Chicago Sun-Times and about 100 other daily and community papers in the Chicago area is in the midst of an aggressive cost-cutting effort, and is exploring strategic alternatives to increase shareholder value, including sale of all or part of the chain.