BuzzFeed Inc. Granted Extension on Nasdaq Delisting

The tradition and leisure writer BuzzFeed Inc. has been granted a further 180 days to boost the worth of its inventory above $1, based on SEC filings.

The publicly traded media firm had initially acquired a discover of delisting from the Nasdaq on Could 31 warning the writer that it had 180 days, ending on Nov. 27, to get its inventory above the $1 threshold. 

Corporations have to satisfy plenty of standards with the intention to commerce on the Nasdaq, one in every of which is that their bid worth should be above a $1 minimal. BuzzFeed Inc. inventory is at the moment buying and selling at 30 cents.

A consultant for the corporate declined to remark. The writer now has till Could 28, 2024 to satisfy the minimal bid requirement, based on the submitting. 

As a part of the settlement, BuzzFeed Inc. will switch from the Nasdaq World Market to the Nasdaq Capital Market, the third tier of the three-tiered Nasdaq World Market Composite. Corporations buying and selling on the Capital Market usually have decrease ranges of market capitalization in comparison with the opposite two tiers.

Nasdaq made the choice to increase the deadline after BuzzFeed Inc. utilized to switch to the Capital Market and provided a notification of its intent to spice up its inventory worth, based on the submitting. The corporate said its willingness to conduct a reverse inventory cut up, if vital, so as to take action.

If BuzzFeed Inc. is unable to satisfy the minimal bid requirement by Could 28, it should obtain one other discover of delisting, which it might once more enchantment.

Publicly traded turmoil

The information marks a grim milestone for BuzzFeed Inc., which entered the general public markets by way of a particular goal acquisition firm (SPAC) in December 2021.

The corporate turned essentially the most distinguished digital media writer to go public, and its efficiency was seen as a barometer and comparability level for different publishers.

After its inventory debuted at a worth of $10 per share, its worth rapidly plummeted. The present complete market capitalization of the corporate, $42 million, is decrease than the $73 million it generated in its most up-to-date quarter, based on public filings.

Like many publishers, BuzzFeed Inc. has struggled commercially within the face of a depressed promoting market. 

It has additionally seen its editorial technique—premised on platform distribution and scale—collapse as social media corporations and search platforms refer fewer readers.