J.C. Penney said the New York Stock Exchange on August 6 notified the company that it is no longer in compliance with continued-listing criteria.
Continued-listing requires an average closing share price of at least $1 for 30 straight trading days. The rules allow its common stock to be listed and traded while it rights the situation, subject to compliance with other continued-listing requirements, according to a company press release.
In accordance with NYSE rules, Penney said it 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.
The company plans to notify the NYSE within 10 business days of receipt of the notification of its intent to cure the deficiency. The company is in compliance with all other NYSE continued listing standard rules.
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.
The NYSE notification does not affect the company’s business operations or its Securities and Exchange Commission reporting requirements, and it does not conflict with or cause an event of default under any of the company’s material debt or other agreements.