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The New York Stock Exchange (NYSE) requires all listed securities to maintain an average closing price of at least $1. SOS Limited, a blockchain-based service provider, has recently received a noncompliance notice from the NYSE after its American Depositary Shares (ADSs) fell below the $1 threshold for a consecutive 30-day trading period.
To avoid suspension and potential delisting from the NYSE, SOS Limited must bring its share price and average share price back above $1 within the next six months.
Compliance Timeline and Requirements
In response to the noncompliance notice, SOS Limited explained the procedures for regaining compliance. The company can meet the NYSE’s requirements at any time during the six-month cure period. If, on the last trading day of any calendar month within this period, the company’s ADSs close at or above $1 and maintain an average closing share price of at least $1 over the preceding 30-day trading period, the company would be considered compliant.
No Immediate Impact on Trading
The noncompliance notice has no immediate impact on the listing of SOS Limited’s ADSs. The shares will continue to be listed and traded on the NYSE throughout the six-month cure period, provided the company meets other listing requirements set by the exchange.
Potential Delisting
If SOS Limited fails to meet the $1 threshold by the end of the six-month cure period, the NYSE will begin procedures for suspending and delisting the company’s shares. This would occur if both the closing share price on the last trading day of the cure period and the average closing share price over the 30-day period ending on that day remain below $1.
Recent Stock Performance
As of the latest update, SOS Limited’s share price dropped 4.13% to $0.70 in pre-market trading on Nasdaq. The company’s stock has been trading below the $1 mark since May 22, underscoring the challenges it faces in regaining compliance.
This situation echoes a similar issue faced by Bakkt, a crypto custody and trading platform, which was also warned by the NYSE earlier this year for failing to maintain an average closing share price above $1 over a 30-day trading period.
SOS Limited now faces a crucial period as it works to meet the NYSE’s listing standards and avoid the potential consequences of noncompliance.
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