B. Riley Financial (RILY, Financial) has received a notification from Nasdaq about not meeting the exchange's listing requirements due to the delay in submitting its annual report. The investment bank, headquartered in Los Angeles, disclosed this information on Friday, stating efforts are underway with auditors to file the report promptly. This announcement led to an 11% drop in its shares on Monday.
Nasdaq has given B. Riley Financial until May 17 to present a plan for regaining compliance with the listing rules. Although the non-compliance notice does not immediately affect the company's listing status, it underscores the urgency for B. Riley to address the filing delay.
Adding to its challenges, B. Riley announced a reduction in its quarterly dividend last month and acknowledged a delay in its annual SEC filing. This delay is attributed to an ongoing review by the company's board and external counsel of its transactions involving Brian Kahn. The scrutiny over B. Riley has intensified due to its investment in Franchise Group, the parent company of Vitamin Shoppe, which recently went private through a management buyout led in 2023. Reports have linked Franchise Group's former CEO, Kahn, to a securities fraud case with Prophecy Asset Management.
