B. Riley receives Nasdaq warning over annual report delay

B. Riley gets warning: B. Riley Financial has received a notification from Nasdaq regarding non-compliance with the exchange operator's listing rules due to a delay in filing its annual report, the boutique investment bank announced in a statement on Friday.

The Los Angeles-based company had previously stated on Monday that it was collaborating with auditors to finalise and submit its annual report "as soon as reasonably possible," which resulted in an 11 per cent decline in its shares on the same day.

Although the notification does not immediately impact B. Riley's listing status, Nasdaq has instructed the company to devise a plan within 60 calendar days, or by May 17, outlining its strategy to regain compliance with the listing rules.

Last month, the bank reduced its quarterly dividend by half and announced a delay in filing its annual report with the Securities and Exchange Commission. 

The delay was attributed to a review conducted by its board and external legal counsel regarding transactions involving Brian Kahn.

B. Riley has attracted investor and media attention due to its investment in Franchise Group, the owner of Vitamin Shoppe, during its privatisation by a management-led buyout in 2023. 

Media reports have implicated Franchise's former CEO, Brian Kahn, as a co-conspirator in a securities fraud case involving Prophecy Asset Management.

(With Reuters Inputs)