F45 Training Holdings, Inc. reported its intention to voluntarily delist from the New York Stock Exchange (NYSE) and to deregister its common stock.
As previously disclosed, the company received a notice from the NYSE that it is not in compliance with the continued listing standards of the NYSE because the company is behind in its public filings and because the average closing price of its common stock was less than $1.00 per share over a consecutive 30 trading-day period. Since receipt of the notice, the company’s common stock has generally traded below $1.00 per share.
“In response, the company has evaluated whether to remain listed or to go dark and has determined that going dark is the best path for the company due to the expected substantial cost savings and the company’s current inability to realize the traditional benefits of public company status,” said F45 Training in a press release.
“The company said its continued low trading value, and the resulting low trading price, affects the company’s ability to raise capital from the public markets, effectively use its securities as transaction consideration or attract interest from institutional investors or market analysts. Despite the lack of these benefits, the company incurs all of the significant annual expenses and indirect costs associated with being a public company. As a result of going dark, the company will no longer be obligated to pay these significant expenses and will experience substantial cost savings,” said F45.
The fitness boutique added, “The company also believes the reduction in time spent by its management and employees complying with the requirements applicable to SEC reporting companies will enable them to focus more on managing the company’s businesses, strengthening relationships with franchisees and vendors and growing stockholder value. The company will continue to focus on long-term growth but without the distraction of short-term financial results and stock price movement.”
F45’s delisting from the NYSE comes as the company announced on March 31 that Tom Dowd was appointed CEO, succeeding interim CEO Ben Coates, who remains on its board of directors. Mark Wahlberg, the actor and a member of the company’s board since March 2019, was named F45’s chief brand officer.
