Business & Real Estate

McClatchy stock regains compliance with New York exchange

The McClatchy Co. said Friday it has regained compliance with New York Stock Exchange regulations and its shares will continue to be listed on the exchange.

Sacramento-based McClatchy, which owns The Sacramento Bee, was warned in February that it could lose its New York exchange listing because its average closing share price had fallen below $1 for 30 straight trading days. Delisting would have forced McClatchy to find another stock exchange.

On Friday the company said the New York exchange has lifted the delisting warning.

McClatchy’s stock price began perking up after McClatchy proposed a reverse stock split, in which McClatchy would issue one new share for every five shares outstanding; the plan could be altered to create a 25-to-1 exchange. The plan requires approval of McClatchy shareholders.

McClatchy shares closed at an average $1.14 over a 30-day trading period that ended Thursday, the last day of the month. However, the shares closed Friday at 99.2 cents, down 5.8 cents.

Dale Kasler: 916-321-1066, @dakasler