The SBS annual proxy statement asks shareholders for approval of a reverse stock split of both Class A and Class B stock "of not less than 1-for-5 and not more than 1-for-10." The Board of directors would have discretion about the exact split, which would lift the price of "SBSA" safely above the $1 minimum required by NASDAQ. Miami-based Spanish Broadcasting System received a de-listing warning last October and hasn't been able to come into compliance since then. CEO Raul Alarcon and his team face an appeals panel of the NASDAQ on May 12, and will present the plan as a way to stay within the rules of the exchange. SBS says "we believe the reverse stock split should make our Class A common stock more attractive to institutional and other investors."

Effective date of the reverse stock split could be around June 9, unless the price of the existing stock rises above $1. If that happens, the board could abandon the plan, since it would be unnecessary. "SBSA" closed Thursday at 79 cents a share. Run a chart of the recent stock activity here.