Urban One Stock: Why The Price Dropped Today

By Amit Chowdhry ● Nov 3, 2021
  • The stock price of Urban One Inc (NASDAQ: UONE) fell by over 30% pre-market today. This is why it happened.

The stock price of Urban One Inc (NASDAQ: UONE) fell by over 30% pre-market today. Investors are responding negatively to a Bizjournals report that the results of a Richmond ballot measure for determining if Urban One can build a $600 million casino in the city were too close to call this morning.

Of the 71 of 72 precincts reporting, a slight majority of 51.4% of city voters opposed the referendum according to unofficial results — placing opponents ahead by more than 2,200 votes.

And most of the precincts on the south side of the city where the casino would be located voted for the measure while those in the north and west mostly voted against the referendum.

Urban One had spent millions of dollars on a marketing campaign pitching the benefits of the casino like $50 million in annual tax revenue.

Richmond For All — which is an activist group that was pushing against the casino — said that knocking on doors and talking to neighbors “proved that an organized grassroots can defeat moneyed interests.”

Urban One CEO Alfred Liggins believes that the state’s General Assembly could consider putting the casino in one of Richmond’s surrounding areas if they lost the polls.

The company’s proposed One Casino + Resort is calling for 100,000 square feet of gaming space, which would include 1,800 slot machines, over 100 table games, a poker room, and sportsbook. And this resort would also include a 250-room hotel called Legacy Tower and a theater operated by Live Nation Entertainment.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.