(Reuters) – Nasdaq has notified B. Riley Financial of non-compliance with the exchange operator’s listing rules due to a delay in the filing of its annual report, the boutique investment bank said in a statement on Friday.
The Los Angeles-based company said on Monday it was working with auditors to complete and file its annual report “as soon as reasonably possible”, sending its shares down 11% on the day.
While the notification has no immediate effect on B. Riley’s listing, Nasdaq has informed the company it must submit a plan within 60 calendar days, or by May 17, to address how it intends to regain compliance with the listing rules.
The bank halved its quarterly dividend last month and said it would delay filing its annual report with the Securities and Exchange Commission due to a review by its board and outside counsel of its transactions with Brian Kahn.
B. Riley has been under investor and media scrutiny due to its investment in Vitamin Shoppe-owner Franchise Group when it was taken private by a management-led buyout in 2023. Media reports have named Franchise’s former CEO Kahn as co-conspirator in a securities fraud involving Prophecy Asset Management.
(Reporting by Mehnaz Yasmin in Bengaluru; Editing by Devika Syamnath)
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