Urban One Faces Nasdaq Delisting Over Regulatory Non-compliance Issues

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Urban One, the multifaceted media conglomerate with television and radio under its broad umbrella, has found itself facing potential delisting from the Nasdaq over certain regulatory non-compliance issues. The company, known for its stance on “Representing Black America,” has been trading on the Nasdaq since June 2000 under the ticker “UONEK”. However, recent allegations by securities regulators have threatened this long-standing relationship. Urban One’s perceived lapses centered around the inability to file its 2022 annual and quarterly reports in a timely manner which may lead to the company’s delisting from the stock market.

Despite these setbacks, Urban One did manage to file its delayed 2022 annual report on June 30th, indicating potential remediation. Furthermore, it filed its fourth-quarter report a week into July and its first-quarter 2023 report last week, highlighting an effort to rectify past issues. However, these stuttering steps at compliance have not been enough to appease Nasdaq officials who have underlined their expectations of consistent and timely reporting.

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A significant thread in this tapestry involves one of Urban One’s ambitious ventures—the proposed $562.5 million casino resort in Richmond, Virginia. In partnership with Peninsula Pacific Entertainment (P2E), Urban One aspired to create a thriving resort at the heart of the city, but the vision was narrowly dismissed by local voters. The convoluted accounting process and the ‘timing of expense recognition of non-cash stock-based compensation’ related to this failed project, the company claims, contributed to the reporting delays.

Optimistically looking to the future, Urban One let go of its accounting firm, BDO USA, in July, replacing it with Ernst & Young. The company’s leaders express confidence in their financial strength amidst mounting obstacles and maintain that the filing hiccups are the result of complicated accounting seasons and not symptomatic of structural issues.

Ironically, Urban One has faced both success and defeat in the casino arena. Earlier this year, it sold its stake in the MGM National Harbor for a hearty $145.5 million, realizing a more than three-fold increase on its initial $40 million investment to bolster MGM’s diversity portfolio.

Despite its current quandaries, Urban One plans to appeal the Nasdaq delisting decision at a hearing set for October 20. This appeal effectively stays any suspension or delisting actions until the hearing’s end.

Urban One’s ongoing saga shows how unpredictable the casino business can be. For Canadians interested in a more stable and hassle-free gambling experience, turning to Canada’s top online casinos might be a wise move. Over at the West Island Blog, we have collated a list of the most reputable and entertaining online casinos available this month. Do give it a look if you’re in the mood for a flutter or two.