According to the company, it has until March 2021, or approximately 18 months, to become compliant or risk being removed from the NYSE.
McClatchy is below compliance with two of the NYSE American continued listing standards, stemming from a reported stockholders’ deficit of $372.5 million (as of June 30, 2019) and net losses during the four most recent fiscal years.
Currently, the company’s market value falls below the NYSE American minimum of $15 million.
The Sacramento Bee, one of the company’s 30 newspapers, notes the exchange’s rules don’t include the market value of Class B shares. In this case, those are controlled mostly by members of the McClatchy family. The rules also don’t take into account shares held by two institutions, each owning 10% of the company.
McClatchy’s market value would be more than $23 million if these shares were taken into account.
McClatchy said that neither the notification nor delisting would affect its business operations. Its stock is being traded with an attached designation of “.BC” to indicate its noncompliance.
The company will submit a plan to NYSE American by October 9 that outlines how it will regain compliance by the deadline.NYSE American can delist the company if it doesn’t approve of the plan, if the company doesn’t make progress in line with the plan, or is not in compliance by the deadline.