Express threatened with delisting
Express, its share price falling, is at risk of being delisted from the New York Stock Exchange.
The apparel retailer received notification that it is no longer in compliance with the New York Stock Exchange continued listing criteria, which requires listed companies to maintain an average closing share price of at least $1.00 over a consecutive 30 trading-day period.
Express said it received written notice of the non-compliance on September 29, 2020. In accordance with NYSE rules, the retailer has a period of six months from receipt of the notice to regain compliance with the NYSE’s minimum share price requirement.
Similar to many other apparel retailers, Express’ sales have declined significantly during the pandemic.
“We are in the early stages of our strategic transformation,” said Tim Baxter, CEO, Express, which operates more than 500 stores in the United States and Puerto Rico, as well as an online store.
“We are confident in our strategy based on the early consumer response to our product and brand vision. We believe that this, combined with the significant cost saving actions we have taken, will put us back on The EXPRESSway Forward.”
Under NYSE rules, a 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’s common stock has a closing share price of at least $1.00 and an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of that month or on the last day of the cure period.
In accordance with the NYSE’s rules, plans to formally notify the NYSE of its intent to cure the deficiency, including for example through a reverse stock split, subject to board and stockholder approval, if necessary, to cure the share price non-compliance.
The NYSE notification does not affect the ongoing business operations of the company or its reporting requirements with the Securities and Exchange Commission nor does it trigger any violation of its debt obligations.