Nasdaq Puts Penn National in Non-Compliance
WYOMISSING, Pa. — Penn National Gaming Inc. announced Friday it has received notice from Nasdaq that it is out of compliance with exchange rules because it has not filed its quarterly report with the Securities and Exchange Commission for the quarter ended Sept. 30.
Penn National Gaming owns and operate Hollywood Gaming at Mahoning Valley race Course in Austintown, Ohio. It opened the racino in September 2014. The company’s shares trade under PENN on Nasdaq. Common shares closed at $17.58 Friday, or down 1.57%.
The filing delay, which put Penn National out of compliance with Listing Rule 5250(c)(1), is because of Penn National’s previously disclosed change in its master lease with Gaming and Leisure Properties Inc., specifically from an operating lease to a financing obligation, the company said.
Penn National has at least 60 days under Nasdaq listing requirements to submit a plan to regain compliance. The company said expects to make the filing by the end of the year.
It noted it has not previously received a notice of non-compliance from Nasdaq during the 21 years in which its stock has been traded on the exchange.
As a result of the change in lease classification, Penn National anticipates it will report additional liabilities of approximately $3.5 billion as of Sept. 30, which represents the present value of the future minimum lease payments to Gaming and Leisure Properties Inc. under the master lease.
The company doesn’t expect the change in classification to affect its cash flows for prior and future periods.
SOURCE: Penn National Gaming Inc.
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