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April 11, 2023
Cinedigm April 11 disclosed it is looking for a second reprieve from Nasdaq regarding its listing as a publicly traded stock. The Los Angeles-based streaming video network operator and home entertainment distributor had been given 180 days to raise its stock price above the mandatory minimum $1-per-share price by April 3.
That deadline passed with Cinedigm unable to increase its share price to the mandatory minimum threshold.
The company is now requesting a hearing before the Nasdaq panel at which it will present its plan of compliance and request a further extension. The panel has the discretion to grant Cinedigm an additional 180 calendar days from April 5 to regain compliance. This request will automatically stay any delisting or suspension action pending the issuance of a final decision by the panel and the expiration of any further extension granted by the panel.
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Should Cinedigm’s stock be delisted, the company could have more difficulty obtaining outside funding, including issuing new shares to the market to establish new financial initiatives.
Cinedigm’s share price closed April 11 at 45 cents per share. The company ended its most-recent fiscal period with net income of nearly $5 million on revenue of almost $28 million.