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