Broadway Financial Corporation Maintains Nasdaq Capital Market Listing
Received Extension of Compliance Period to December 30, 2013
LOS ANGELES -- July 8, 2013
Broadway Financial Corporation (the “Company”) (NASDAQ Capital Market: BYFC),
today reported that on July 3, 2013 the Company received a written
notification from Nasdaq that the Company has been granted an additional 180
calendar days, or until December 30, 2013, to regain compliance with the
minimum $1.00 bid price per share requirement of Nasdaq's Marketplace Rule
5550(a)(2) (the “Rule”).
The Company had originally received a notification from Nasdaq on January 3,
2013 stating that the Company had failed to comply with the Rule because the
bid price for the Company's common stock over a period of 30 consecutive
business days ending prior to such date had closed below the minimum $1.00 per
share requirement for continued listing. That notification has provided the
Company a period of 180 days, ending on July 2, 2013, to regain compliance
with the Rule.
By the end of June 2013 it became apparent that the Company would not be in
compliance with the Rule by July 2, 2013, which would subject the Company's
common stock to delisting from The Nasdaq Capital Market. As a result, the
Company notified Nasdaq and applied for an extension of the cure period, as
permitted under the original notification. In the application the Company
indicated that it met all other continuing listing requirements for the Nasdaq
Capital Market and provided written notice of its intention to cure the
deficiency during the second compliance period of an additional 180 days, by
various plans, including effecting a reverse stock split, if necessary.
If at any time before December 30, 2013, the bid price of the Company's common
stock closes at or above $1.00 per share for a minimum of 10 consecutive
business days, Nasdaq will provide written notification that the Company has
achieved compliance with the Rule.
If compliance with the Rule cannot be demonstrated by December 30, 2013,
Nasdaq will provide written notification that the Company's common stock will
be delisted. At that time, the Company may appeal Nasdaq’s determination to a
As previously announced, the Company is pursuing a comprehensive
Recapitalization that is intended to reduce approximately $22.7 million of
senior debt, preferred stock and related accumulated dividends, eliminate the
estimated $1.69 million of accrued but unpaid interest on all of the Company’s
senior debt, raise gross proceeds of $4.2 million of new equity capital, and
result in the issuance of approximately 18.1 million shares of common stock
and common stock equivalents.
The Company will continue to monitor the bid price for its common stock and
consider various options available to it if its common stock does not trade at
a level that is likely to regain compliance.
Additional information regarding the notification letter received on July 3,
2013 will be made available in a Form 8-K filed by the Company.
About Broadway Financial Corporation
Broadway Financial Corporation conducts its operations through its
wholly-owned subsidiary, Broadway Federal Bank, f.s.b., which is the leading
community-oriented savings bank in Southern California serving low to moderate
income communities. We offer a variety of residential and commercial real
estate loan products for consumers, businesses, and non-profit organizations,
other loan products, and a variety of deposit products, including checking,
savings and money market accounts, certificates of deposits and retirement
accounts. The Bank operates three full service branches, two in the city of
Los Angeles, and one located in the nearby city of Inglewood, California.
Shareholders, analysts and others seeking information about the Company are
invited to write to: Broadway Financial Corporation, Investor Relations, 5055
Wilshire Boulevard, Suite 500, Los Angeles, CA 90036, or visit our website at
This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These forward-looking
statements are based upon our management’s current expectations, and involve
risks and uncertainties. Actual results or performance may differ materially
from those suggested, expressed, or implied by the forward-looking statements
due to a wide range of factors including, but not limited to, the general
business environment, the real estate market, competitive conditions in the
business and geographic areas in which the Company conducts its business,
regulatory actions or changes and other risks detailed in the Company’s
reports filed with the Securities and Exchange Commission, including the
Company’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. The
Company undertakes no obligation to publicly revise any forward-looking
statement to reflect any future events or circumstances.
Broadway Financial Corporation
Wayne-Kent A. Bradshaw, Chief Executive Officer, 323-556-3248
Brenda Battey, Interim Chief Financial Officer, 323-556-3264
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