Broadway Financial Buys More Time to Prop Up Stock

Nasdaq has granted Broadway Financial (BYFC) in Los Angeles a six-month reprieve to raise its share price.

The exchange has given the $363 million-asset Broadway until Dec. 30 to meet the minimum-bid requirement, the company said Monday. Nasdaq requires companies to trade at $1 per share or higher; Broadway's stock was trading at 69 cents a share on Monday afternoon.

Broadway will try to raise its stock price through various means, possibly including a reverse stock split, it said. It is currently attempting to recapitalize by reducing approximately $24.4 million of debt, dividends and interest payments and raising $4.2 million through common stock sales, it said in the release.

To avoid delisting, Broadway's stock will have to close above $1 for ten consecutive trading days. Nasdaq had first notified the company that it had violated the rule on Jan. 2 and gave it 180 days to return to compliance. The exchange extended the grace period an additional 180 days on July 3.

Broadway sold nearly $9 million of loans in May and $16 million worth in February. It named a new chief financial officer in April.

Its Broadway Federal Bank unit has three branches in Los Angeles.