1. Late Wednesday, Emmis received notification from the Nasdaq Stock Market ("Nasdaq") that the Company's Class A Common Stock had closed below the minimum $1.00 per share bid requirement for 30 consecutive business days (starting July 19) and therefore is not in compliance with Nasdaq Marketplace Rule 5450(a)(1) (the "Minimum Bid Rule"). The Company has until February 27, 2012, to regain compliance with the Minimum Bid Price Rule. During this period, the Company's Class A Common Stock will continue to trade on the Nasdaq Global Select Market.
2. INDIANAPOLIS, Sept. 1, 2011 /PRNewswire/ -- Emmis Communications Corporation (Nasdaq:EMMS - News) today announced it has completed the transfer of WKQX-FM (101.1 MHz, Chicago, IL), WLUP-FM (97.9 MHz, Chicago, IL) and WRXP-FM (101.9 MHz, New York, NY) to Merlin Media LLC ("Merlin Media"), and the sale of a controlling interest in Merlin Media to Chicago-based private equity firm GTCR and Randy Michaels.
Emmis received approximately $120 million in cash proceeds from the sale of the stations, net of transaction expenses, and continues to own $28.7 million of preferred equity and 20.6% of the common equity interests in Merlin Media. The net cash proceeds were used to repay approximately 38% of the company's term loans under its senior credit facility.