Lee Enterprises Receives Notification from Nasdaq Related to Delayed Quarterly Report on Form 10-Q
February 14 2023 - 5:03PM
Lee Enterprises, Incorporated (NASDAQ: LEE), a digital-first
subscription platform providing high quality, trusted, local news,
information and a major platform for advertising in 77 markets, has
received a letter from the Listing Qualifications Department of The
Nasdaq Stock Market LLC (“Nasdaq”) indicating that, as a result of
the Company’s continued delay in filing its Annual Report on Form
10-K for the fiscal year ended September 25, 2022 (the “2022 Form
10-K”) and because the Company did not file its Quarterly Report on
Form 10-Q for the period ended December 25, 2022 (“2023 Q1 Form
10-Q”), within the prescribed time period, the Company is not in
compliance with the timely filing requirement for continued listing
under Nasdaq Listing Rule 5250(c)(1).
The notification has no immediate effect on the
listing or trading of the Company's common stock on The Nasdaq
Capital Market. Lee must submit a plan of compliance (the “Plan”)
to Nasdaq within 60 days of the extended filing due date of the
2022 Form 10-K, or no later than February 27, 2023, addressing how
it intends to regain compliance with the Nasdaq Listing Rule. If
Nasdaq accepts the Plan, it may grant an extension of up to 180
days from the original filing due date of the 2022 Form 10-K, or
until June 26, 2023, to regain compliance. If the Company fails to
regain compliance with the Nasdaq Listing Rule within the time
periods described above, the Company's common stock could be
subject to delisting from Nasdaq.
On December 12, 2022, Lee disclosed that it
required additional time to file its fiscal 2022 Form 10-K for the
period ended September 25, 2022, and on February 6, 2023, the
Company provided an update on the status of filing its Annual
Report on Form 10-K on a Current Report on Form 8-K, with
additional information on the Company’s evaluation of internal
controls over financial reporting and the evaluation of an
acquisition-related deferred tax asset that stemmed from a
transaction in 2009, and whether this deferred tax asset still has
the current balance sheet carrying value or should be written down.
Also on February 6, 2023, the Company disclosed that it required
additional time to file the 2023 Q1 Form 10-Q.
The Company is working diligently to complete
all matters pertaining to the 2022 Form 10-K and 2023 Q1 Form 10-Q
as soon as practicable; however, no assurance can be given as to
the definitive date on which the 2022 Form 10-K and 2023 Q1 Form
10-Q will be filed.
Notwithstanding the ongoing nature of its
internal controls evaluation, the Company does not expect the
evaluation to result in any material impact on the preliminary
financial results the Company released on December 8, 2022, for the
12-month period as of and ended September 25, 2022.
Note Regarding Forward-Looking
Statements
This press release contains statements that are
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. The Company intends
these forward-looking statements to be covered by the safe harbor
provisions for such statements. All statements that do not concern
historical facts are forward-looking statements. The words
“believe,” “could,” “possibly,” “probably,” “anticipate,”
“estimate,” “project,” “expect,” “may,” “will,” “should,” “seek,”
“intend,” “plan,” “expect,” or “consider” and similar expressions
are intended to identify forward-looking statements but are not the
exclusive means of identifying such statements. Forward-looking
statements are subject to risks and uncertainties, which could
cause actual results to differ materially from such statements,
including, but not limited to the risk that the Company may not be
able to file the 2023 Q1 Form 10-Q within the currently expected
timeframe, risks that the Company may not regain compliance with
Nasdaq continued listing requirements within the applicable grace
period, as well as the other risks set forth in our filings with
the Securities and Exchange Commission. These forward-looking
statements should be considered in light of these risks and
uncertainties. The Company bases its forward-looking statements on
information currently available to it at the time of this report
and undertakes no obligation to update or revise any
forward-looking statements, whether as a result of changes in
underlying circumstances, new information, future events or
otherwise.
About LeeLee Enterprises is a
major subscription and advertising platform and a leading provider
of local news and information, with daily newspapers, rapidly
growing digital products and over 350 weekly and specialty
publications serving 77 markets in 26 states. Year to date, Lee's
newspapers have average daily circulation of 1.0 million, and our
legacy websites, including acquisitions, reach more than 38 million
digital unique visitors. Lee's markets include St. Louis, MO;
Buffalo, NY; Omaha, NE; Richmond, VA; Lincoln, NE; Madison, WI;
Davenport, IA; and Tucson, AZ. Lee Common Stock is traded on NASDAQ
under the symbol LEE. For more information about Lee, please visit
www.lee.net.
ContactIR@lee.net(563)
383-2100
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