We told you Sirius has been in trouble with the NASDAQ for a while now. Their stock has dipped below $1 since September 2008, which violates the exchange’s rules.
So the satellite radio operator announced that they have scheduled a hearing, set for April 29 with NASDAQ. They will ask for time — until September 13 — to get its price above $1.
If they don’t make it happen, Sirius risks getting kicked off the exchange.
“The Company intends to take all necessary steps to maintain the listing of its common stock,” it said in a statement released this morning.
How do they plan to do it? With a reverse stock split, according to their statement:
The Company’s stockholders have granted the Company’s board of directors the discretion to effect a reverse stock split, which would bring the Company into compliance with the NASDAQ bid price requirement. While the authority granted to the board expires on June 30, 2010, the Company will seek approval from stockholders at its upcoming annual meeting to extend that authority through June 30, 2011. The board of directors intends to effect the reverse stock split only if it determines the action to be in the best interests of stockholders.
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