Offshore driller Pacific Drilling has received notice from the New York Stock Exchange (NYSE) that the company is considered to be “below compliance” with NYSE’s continued listing standards for a listed company.
The driller said on Friday that the two NYSE continued listings standards applicable to the company that it is at risk of failing to satisfy are maintenance of average market capitalization of not less than $15 million over a 30 trading-day period, which is a minimum threshold standard that does not allow for any plan/cure period; and average closing price of its common stock of not less than $1.00 over a consecutive 30-trading-day period.
NYSE notified the driller that as of August 30, 2017, its 30 trading-day average share price was $0.99 and, consequently, the company would be delisted if it is not able to return to compliance with the NYSE continued listing standards within the applicable six-month cure period.
Pacific Drilling has until September 15, 2017, to submit to the NYSE a letter indicating whether and how it intends to cure the share price deficiency.
In addition, the company noted that its market capitalization dipped below $15 million for the first time on August 16, 2017. Consequently, the company expects that unless its market capitalization increases materially, NYSE will start delisting proceedings for the company’s common stock on or about September 13, 2017, and before it is required to respond to NYSE’s notice of delisting due to the share price deficiency.
The $15 million average market capitalization continued listing condition does not allow for any plan/cure period and, consequently, the company would be automatically and immediately delisted on the date that this condition ceases to be satisfied. In that circumstance, the company’s common shares will trade solely in the over-the-counter market.