Broadway Financial Corporation Maintains Nasdaq Capital Market Listing
Received Extension of Compliance Period to December 30, 2013
LOS ANGELES--(BUSINESS WIRE)-- 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 Hearings Panel.
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 www.broadwayfederalbank.com.
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
KEYWORDS: United States North America California
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