TheStreet in danger of being delisted by Nasdaq
TheStreet, the struggling financial news sšite co-founded by šJim Cramer, is in danger of getting delisted by Nasdaq because its share price has traded at below $1 for more than 30 business days.
The exchange will delist TheStreet on June 12 if its shares donāt trade above the dollar level for 10 straight days before that date, the news site disclosed in aź¦ regulatory filing.
Shares of TheStreet are down š§ø40 percent this year ā and traded down 3.3 percent on Monday, to 89 cents.
Insiders, including Cramer, the companyās largest shareholder with a 9.8 percent stake, have been buying up the stock on the cheap ā but the moves werenāt enough to offset the 973,951 shares that Raging Capital and itšs chairman, William Martin, dumped on Dec. 13, cutting its take from 9.3 percent in June to 6.3 percent.
The delisting warning comes only weeks afterāØ Lake Street Capital initiated covā¤erage on Dec. 8 with a ābuyā rating with a target price of $2 a share.
In the third quarter ended Sept. 30, the company swung to a loss of $1.2 million from a profit of $354,326, or 1 cent a share, išn the year-earlier period.
Revenue fell 9 percent in the period, tš¬o $15.2 million.
Wall Street is expecting more red inkļ潚„ļæ½ in the current quarter.
David Callaway, formerly at USA Today, was brought in as the new CEO in July to replace Elisabeth DeMarse, who was forced out in February. He has been scrambling to reposition the company and cutļ·½ staff.
Even though he has no active ź§ role at TheStreet, Cramer, the host of CNBCās āMad Money,ā is still reaping some nice rewards at the sagging company.
While he draws no salary at TheStrš eet, Cramer will be paid a licensing fee by the company in 2016 of at least $2.5 million.
That is šdown from the $3 million in licensing fees paid in 2015.