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The New York Stock Exchange mandates all listed securities to maintain an average closing price of $1 or more.
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SOS Limited, a blockchain-based service solution provider, has received a noncompliance letter from the New York Stock Exchange (NYSE) due to underperforming stock prices. The trading price of its American depositary shares (ADSs) dropped below $1 over a consecutive 30 trading-day period.
SOS is legally required to bring its share price and average share price back above $1 in six months or risk suspension and delisting from the NYSE.
No immediate impact on shareholders
Explaining the compliance procedure, SOS said in a statement:
“The company can regain compliance at any time during the six-month cure period if, on the last trading day of any calendar month during the cure period, the company has a closing share price of at least $1 and an average closing share price of at least $1 over the 30 trading-day period ending on the last trading day of that month.
The noncompliance notice has no immediate impact on the listing of the company’s ADSs, which will continue to be listed and traded on the NYSE during the six-month cure period as long as other listing requirements of the NYSE are complied with.
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Drop in share price
The NYSE will commence suspension and delisting procedures in case at the end of the six-month cure period, both a $1 closing share price on the last trading day of the cure period and a $1 average closing share price over the 30 trading-day period ending on the last trading day of the cure period, could not be met.
SOS Limited stock 6-month price chart. Source: Google Finance
The company’s share price fell 4.13% to $0.7 in pre-market trading on Nasdaq. As shown in the chart above, SOS stock prices touched $1 on May 22 and have been trading below the $1 mark since.
In March, the NYSE had threatened to delist crypto custody and trading platform Bakkt if it did not get its average closing share price back above $1. Bakkt said the NYSE notified it that it was not in compliance with the stock exchange’s listing rules as over the past 30-day trading period, its share price closed below $1 on average.
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This article first appeared at Cointelegraph.com News
