SOS Limited faces NYSE delisting risk if it doesn’t raise its share price above $1 within six months.
The New York Stock Exchange (NYSE) has issued a noncompliance letter to SOS Limited, a provider of blockchain-based service solutions, as a result of its underperforming stock prices.
The trading price of its American depositary shares (ADSs) declined below $1 for a period of 30 consecutive trading days.
In order to avoid suspension and delisting from the NYSE, SOS is legally obligated to restore its share price and average share price to or above $1 within six months.
No Imminent Effect on Shareholders.
In an official statement, SOS provided an explanation of the compliance process:
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 does not have an immediate effect on the listing of the company’s ADSs.
They will remain listed and traded on the NYSE during the six-month cure period, provided that the other listing requirements of the NYSE are met.
Decrease in the Value of the Stock
In the event that the NYSE is unable to achieve both a $1 closing share price on the last trading day of the six-month cure period and a $1 average closing share price over the 30-day period ending on the last trading day of the cure period, suspension and delisting procedures will be initiated.
In pre-market trading on Nasdaq, the company’s share price decreased by 4.13% to $0.7. SOS stock prices reached $1 on May 22, as illustrated in the chart above, and have been trading below the $1 threshold ever since.
In March, the NYSE had threatened to delist Bakkt, a crypto custody and trading platform, if its average closing share price did not rise above $1.
Bakkt stated that the NYSE informed it that its share price had averaged less than $1 at the end of the previous 30-day trading period, which was in violation of the stock exchange’s listing regulations.
