It has been almost a year and a half in the making, but satellite radio provider Sirius XM has finally regained compliance with Nasdaq.
The company’s share price has remained above the US$1 minimum bid requirement from April 14 to April 27, the ten…
It has been almost a year and a half in the making, but satellite radio provider Sirius XM has finally regained compliance with Nasdaq.
The company’s share price has remained above the US$1 minimum bid requirement from April 14 to April 27, the ten consecutive business days necessary to meet the stock exchange’s listing rules.
Sirius XM has always been confident of achieving this requirement despite the length of time it has breached the rules. The company’s CEO Mel Karmazin had previously pointed to the sheer size of both the company and its investor base to highlight the reason the company should remain on Nasdaq. Sirius XM has more than 3.7 billion shares of common stock available in the public float. It has an equity capitalisation of over US$5.8bn and an enterprise value of nearly US$8.8bn.
Karmazin commented: “Sirius XM is one of the most liquid securities on the Nasdaq Global Select Market; and our equity capitalisation is greater than approximately 92% of the companies listed on The Nasdaq Global Select Market.”
The company’s share price first fell foul of Nasdaq rules in October 2008, just two months after the protracted merger of Sirius and XM. Due to the credit crisis, it was given temporary suspension until Nasdaq sent its warning in September 2009 that Sirius XM had breached Nasdaq rules. The company was given 180 days, or until March 15 this year, to regain compliance.
