Big Board set to boot GateHouse
If GHS is kicked off the Big Board, it would become the third newspaper publisher this year to be delisted at the exchange. Journal Register Co. (JRCO) and Sun-Times Media Group (SUTM) previously withdrew from trading at the Big Board when the value of their shares, like those of GateHouse, fell below the required minimum.
A fourth newspaper publisher, American Community Newspapers (ACN) has been warned that it may be kicked off the Amerian Stock Exchange unless it quickly files the quarterly financia statement required under exhcnage rules.
The NYSE requires a company like GateHouse to maintain a market capitalization of no less than $75 million and an average closing price of $1 per share in any 30-day period. On Aug. 15, the Big Board said that the average market cap for GHS was $57.3 million and the average share price was 99 cents. At the close of trading today, the value of the company’s stock was $34.9 million, or 60 cents per share.
In a filing with the Securities and Exchange Commission today, the Big Board gave GHS 45 days to submit a plan to lift the value of its shares. If the company fails to produce a plan or the exchange declines to accept it, the company would be dropped from trading.
If GHS departs the Big Board, its shares would join those of JRCO and SUTM on the Pink Sheets, an electronic marketplace accessible via any stockbroker.