Posted on: October 3, 2023, 11:13h.
Last updated on: October 3, 2023, 11:13h.
Urban One, the radio and television conglomerate that is seeking voter approval in Richmond for a casino resort, is facing delisting from the Nasdaq stock exchange due to regulatory violations.
Urban One has faced challenges in meeting its securities obligations, resulting in the receipt of a “Nasdaq Staff Determination of Non-Compliance.” The company may appeal the decision and avoid delisting.
Specifically, Urban One failed to file its 2022 financial annual report and quarterly reports in a timely manner. Failure to comply with these requirements often leads to delisting, but there are avenues for appeal.
Company Stresses Compliance
Urban One eventually filed its delayed 2022 annual report and subsequent quarterly reports but faced delays due to the 2021 Richmond casino referendum and accounting issues.
Urban One’s proposal to build a casino resort in Richmond received a narrow rejection from voters, causing uncertainty about the company’s financial position and projections.
Urban One addressed its accounting concerns by replacing its accounting firm, BDO USA, with Ernest & Young. The company maintains that its financial position remains strong despite filing mishaps.
In addition to the referendum setback, Urban One sold its stake in MGM National Harbor for $145.5 million, which had been acquired in 2016. This transaction has no bearing on the upcoming gaming referendum in Richmond.
Appeal Petitioned
Urban One intends to meet with the Nasdaq Hearings Panel on Oct. 20 to discuss its situation and appeal the delisting. The meeting will delay any suspension or delisting action until after it takes place.
According to Urban One CFO Peter Thompson, the company will request an extension period through the hearing and any subsequent additional extension period granted by the Hearings Panel, potentially extending until March 26, 2023.
Churchill Downs, Urban One’s new casino development partner, remains committed to the Richmond Grand Resort & Casino project and states that the securities issues have no impact on the 2023 gaming referendum.