SILVER SPRING, Md. - Urban One, Inc. (NASDAQ: UONEK and UONE), a diversified media company targeting Black Americans and urban audiences, disclosed today that it received a notification from Nasdaq regarding non-compliance with listing rules. The company has not filed its Annual Report on Form 10-K for the fiscal year that ended on December 31, 2023, within the stipulated timeframe.
The Nasdaq Listing Qualifications Department sent the notice on April 8, 2024, citing a breach of Listing Rule 5250(c)(1) due to the delay in filing the 2023 Form 10-K with the Securities and Exchange Commission (SEC).
Urban One has been given 60 days, until June 7, 2024, to submit a plan to regain compliance. If the plan is accepted, Nasdaq may grant an extension of up to 180 days from the original filing deadline, or until September 11, 2024, for the company to comply.
The company's management is working to file the overdue annual report within the 60-day period, which would negate the need to submit a compliance plan. The notification does not immediately affect the listing of Urban One's common stock on Nasdaq.
Still, if the company fails to regain compliance within the granted timeframe, it could face delisting but would be allowed to request a hearing before an independent Nasdaq Hearings Panel.
Urban One has cautioned that some statements regarding its expectations to file the report within the 60-day period are forward-looking and subject to risks and uncertainties. These statements are based on current assumptions and speak only as of their date.
The company has cited several factors that could impact its operations and financial condition, including the effects of the COVID-19 pandemic and other market conditions.
Urban One operates a wide range of media assets, including TV One, numerous radio stations under the "Radio One" brand, and digital platforms targeting the African American community. It also holds a minority interest in the MGM National Harbor gaming resort.
This news is based on a press release statement from Urban One, Inc.
InvestingPro Insights
Amidst the recent notification of non-compliance with Nasdaq listing rules, Urban One, Inc. (NASDAQ: UONEK) has shown some intriguing financial metrics that may interest investors. The company is trading at a low Price / Book multiple of 0.34, suggesting that the stock might be undervalued relative to the book value of its assets as of the last twelve months ending Q3 2023.
Moreover, Urban One's valuation implies a strong free cash flow yield, which can be a positive sign for investors looking for potential cash-generating investments.
On the performance front, Urban One's stock has experienced significant price declines, falling by 64.54% over the last six months and reflecting a 64.74% decrease over the past year. This trend aligns with the "InvestingPro Tips" which note that the stock has fared poorly over recent periods, including the last month and three months.
Despite the price setbacks, Urban One has been profitable over the last twelve months, which may provide a silver lining for the company's financial health.
From a liquidity standpoint, Urban One's liquid assets exceed its short term obligations, which could offer some solace to investors concerned about the company's ability to meet its immediate financial liabilities. Still, it is worth noting that Urban One does not pay a dividend to shareholders, which could influence the investment decisions of income-focused investors.
For investors seeking more in-depth analysis and additional "InvestingPro Tips," there are a total of 9 tips available for Urban One on InvestingPro. These insights could prove valuable in assessing the company's stock potential and future outlook. Interested investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes access to these tips and more.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.