By: E&P Staff
Journal Register Co. will be wiped off the Big Board before trading opens Wednesday.
NYSE Regulation Inc., which regulates listing on the New York Stock Exchange, said it was delisting the publisher of the New Haven Register and other dailies and weeklies without giving it the usual six months to come into compliance for listing.
NYSE Regulation said Journal Register’s “abnormally low” stock price made suspension now appropriate.
Under Big Board standards, floor trading of a stock is suspended if it closes below $1.05, and it is warned it can be delisted if it trades below $1 for 30 consecutive days, or its market capitalization falls below $75 million.
Journal Register (NYSE: JRC) has not traded at or above $1 a share since Feb. 29. It closed trading Friday at 27 cents, and earlier in the weak hit a low of 16 cents on reports that it was considering filing for bankruptcy. Based on Friday’s closing price, Journal Register has a market cap of just $10.4 million.
Journal Register has been hit by a one-two punch of a high debt burden taken on to finance the acquisition of a cluster of Michigan dailies, which have performed poorly in the state’s recessionary climate.
Last Monday, the Yardley, Pa.-based company said it had hired an investment banker to help it assess “strategic options,” including, presumably, sale of all or some of its newspapers.