On August 21, 2008, GateHouse Media, Inc. (the “Company”) was notified (the “Notice”) by the New York Stock Exchange (“NYSE”) that it is not in compliance with the NYSE’s continued listing standards. The NYSE’s Notice indicated that on August 15, 2008 the Company’s thirty (30) trading-day market capitalization of its common stock was approximately $57.3 million and its thirty (30) trading-day average share price was $.99, which was below the NYSE’s quantitative listing standards requiring NYSE listed companies to have an average market capitalization of at least $75.0 million over any consecutive thirty (30) trading-day period (the “Market Capitalization Deficiency”) and to have an average closing price of any listed security not fall below $1.00 per share for any consecutive thirty (30) trading-day period (the “Share Price Deficiency”). Under the applicable rules and regulations of the NYSE, the Company has ten (10) business days from the receipt of the Notice, or until September 5, 2008, to notify the NYSE of its intent to cure these deficiencies and forty-five (45) days from the receipt of the Notice to issue a press release disclosing that it has fallen below the continued listing standards.
Under applicable rules and regulations of the NYSE regarding the Market Capitalization Deficiency, the Company must respond to the NYSE within forty-five (45) days from the receipt of the Notice with a business plan that demonstrates its ability to achieve compliance with the continued listing standards within eighteen (18) months from the receipt of the Notice. If the Company does not submit a business plan demonstrating the ability to achieve such continued listing standards or the NYSE does not accept such plan, the NYSE will commence suspension and delisting procedures.
Under applicable rules and regulations of the NYSE regarding the Share Price Deficiency, the Company has six (6) months from the date of the Notice (or, if later, by its next annual meeting of shareholders if shareholder approval is necessary) to cure the Share Price Deficiency. If the Company is not compliant by this date, its common stock will be subject to suspension and delisting by the NYSE.
The Company is currently exploring alternatives for curing the above deficiencies and restoring compliance with the continued listing standards and intends to notify the NYSE within the required ten (10) business day period that it intends to cure the deficiencies. The Company’s common stock remains listed on the NYSE under the symbol GHS, but will be assigned a “.BC” indicator by the NYSE to signify that the Company is not currently in compliance with the NYSEs continued quantitative listing standards. Although the Company intends to cure the deficiencies and to return to compliance with the NYSE continued listing requirements, there can be no assurance that it will be able to do so.
GateHouse Media owns The Carthage Press, Neosho Daily News, Neosho Post, Greenfield Vedette, Aurora Advertiser, and Pittsburg Morning Sun in this area.
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