CBL Properties on Wedneseday announced that it received notification from the New York Stock Exchange that as of Monday, the company is no longer in compliance with NYSE continued listing criteria, which require listed companies to maintain an average closing share price of at least $1.00 over a consecutive 30 trading-day period.
The company intends to pursue measures to cure the share price non-compliance, including through a reverse stock split of the company's common stock, subject to stockholder approval, no later than at its next annual meeting of stockholders, if such action is necessary to cure the share price non-compliance.
In accordance with NYSE rules, the company has a period of six months from receipt of the notice to regain compliance with the NYSE’s minimum share price requirement, or until the company’s next annual meeting of stockholders, if stockholder approval is required to cure the share price non-compliance, as would be the case to effectuate a reverse stock split. Under NYSE rules, the company’s common stock will continue to be listed and trade on the NYSE during this period, subject to the company’s compliance with other NYSE continued listing requirements.
Under NYSE rules, CBL 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 CBL’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.
The NYSE notification has no impact on CBL operations or its Securities and Exchange Commission reporting requirements, and it does not cause an event of default under any of the company’s material debt or other agreements.