SACRAMENTO, Calif.,
Dec. 18, 2019 /PRNewswire/
-- The McClatchy Company (NYSE
American-MNI) announced today that on December 13, 2019, the NYSE American LLC ("NYSE
American") notified the Company that it has accepted the
Company's plan to regain compliance with the NYSE American's
continued listing standards.
As previously reported by the Company in a Current Report on
Form 8-K on September 13, 2019, the
Company received a letter from the NYSE American on September 9, 2019 stating that the McClatchy
was below compliance with Sections 1003(a)(i) and 1003(a)(ii) of
the NYSE American continued listing standards relating to
stockholders' equity.
The Company submitted a compliance plan
to the NYSE American on October 9, 2019 advising how
the Company plans to regain compliance with the continued listing
standards by March 9, 2021. NYSE
American has reviewed and accepted the plan
and the Company has been granted until March 9, 2021 to implement its plan and regain
compliance. The extension is subject to periodic review by the
NYSE American for compliance with the initiatives set forth in the
plan. If the Company is not in compliance with the continued
listing standards by March 9, 2021,
or if it does not make progress consistent with the plan during the
plan period, NYSE American may initiate delisting proceedings as
appropriate. The Company intends to regain compliance with the NYSE
American continued listing standards by such date; however, there
is no assurance the Company will be able to accomplish this.
The NYSE American notification does not affect the Company's
business operations or its Securities and Exchange Commission
reporting requirements and does not conflict with or cause an event
of default under any of the Company's material debt agreements.
During this period, the Company's common stock will continue to be
traded on the NYSE American with the added designation of ".BC" to
indicate that the Company is not in compliance with the NYSE
American's continued listing standards, subject to compliance with
other continued NYSE American listing requirements.
About McClatchy
McClatchy operates 30 media companies in 14 states, providing
each of its communities with strong independent local journalism in
the public interest and advertising services in a wide array of
digital and print formats. McClatchy publishes iconic local brands
including the Miami Herald, The Kansas City Star, The Sacramento
Bee, The Charlotte Observer, The (Raleigh) News & Observer, and the
Fort Worth Star-Telegram. McClatchy is headquartered in
Sacramento, Calif., and listed on
the New York Stock Exchange American under the symbol MNI.
#ReadLocal
Additional Information
Statements in this press release regarding future financial and
operating results and any other statements about management's
future expectations, beliefs, goals, investments, plans or
prospects constitute forward-looking statements as defined in the
Private Securities Litigation Reform Act of 1995. Any
statements that are not statements of historical fact (including
statements containing the words "believes," "plans," "anticipates,"
"expects," "estimates" and similar expressions) should also be
considered to be forward-looking statements. There are a
number of important risks and uncertainties that could cause actual
results or events to differ materially from those indicated by such
forward-looking statements, including: McClatchy may not
generate cash from operations, or otherwise, necessary to reduce
debt; we may not be successful in reducing debt whether through
open market repurchase programs or other negotiated transactions;
we may not regain compliance with the continued listing standards
of the NYSE American and may not remain listed on the NYSE
American; we may not be successful in obtaining waiver(s) for
minimum pension plan contributions from the Internal Revenue
Service; sales of real estate properties may not close as
anticipated or result in cash distributions in the amount or timing
anticipated; McClatchy may not successfully implement audience
strategies designed to increase audience revenues and may
experience decreased audience volumes or subscriptions; McClatchy
may experience diminished revenues from advertising; McClatchy may
not achieve its expense reduction targets including efforts related
to legacy expense initiatives or may do harm to its operations in
attempting to achieve such targets; McClatchy's operations have
been, and will likely continue to be, adversely affected by
competition, including competition from internet publishing and
advertising platforms; increases in the cost of newsprint;
bankruptcies or financial strain of its major advertising
customers; litigation or any potential litigation; geo-political
uncertainties including the risk of war; changes in printing and
distribution costs from anticipated levels, including changes in
postal rates or agreements; changes in interest rates; changes in
pension assets and liabilities; changes in factors that impact
pension contribution requirements, including, without limitation,
the value of the company-owned real property that McClatchy has
contributed to its pension plan; potential increases in
contributions to McClatchy's qualified defined benefit pension plan
in the next several years; increased consolidation among major
retailers in our markets or other events depressing the level of
advertising; our inability to negotiate and obtain favorable terms
under collective bargaining agreements with unions; competitive
action by other companies; and other factors, many of which are
beyond our control; as well as the other risks listed in the
company's publicly filed documents, including the company's Annual
Report on Form 10-K for the year ended December 30, 2018. Except as required by law,
McClatchy disclaims any intention and assumes no obligation to
update the forward-looking information contained in this
release.
Contact:
|
Stephanie Zarate,
Investor Relations Director
916-321-1931
szarate@mcclatchy.com
|
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SOURCE McClatchy