Item 8.01 Other Events.
On December 13, 2019, NYSE American LLC (the "NYSE American") notified The
McClatchy Company (the "Company") that the Company's plan to regain compliance
with the NYSE American's continued listing standards has been accepted. A copy
of the Company's press release containing this announcement is filed hereto as
Exhibit 99.1.
As previously reported under Item 3.01 of the Company's Current Report on Form
8-K filed on September 13, 2019, the Company received a letter from
the NYSE American on September 9, 2019 stating that the Company was not
in compliance with the continued listing standards of the NYSE American Company
Guide (the "Company Guide") relating to stockholders' equity. The letter
indicated that the Company was not in compliance with Sections 1003(a)(i) and
1003(a)(ii) of the Company Guide, requiring a listed company to have
stockholders' equity of (i) at least $2.0 million if it has reported losses from
continuing operations or net losses in two of its three most recent fiscal years
and (ii) at least $4.0 million if it has reported losses from continuing
operations or net losses in three of its four most recent fiscal years.
The Company submitted a plan to the NYSE American to regain compliance with
Sections 1003(a)(i) and 1003(a)(ii) of the Company Guide on October 9, 2019 and
such plan has been accepted by the NYSE American. The Company has been granted
until March 9, 2021 to implement its plan and regain compliance. Such 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, the 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 Company's common stock will not be delisted by the NYSE American for the
deficiency during the plan period and will continue to trade on NYSE American
under the symbol "MNI," with the added designation of ".BC" to indicate that the
Company is not in compliance with NYSE American's continued listing standards.
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.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. Description
99.1 Press release, dated December 18, 2019
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