Invacare (NYSE:IVC) announced today that it received notice from the New York Stock Exchange (NYSE) that it is not in compliance with certain rules.
Elyria, Ohio-based Invacare’s non-compliance involves Section 802.01C of the NYSE Listed Company Manual. The average closing price of the company’s common shares came in under $1 per share over a consecutive 30-day trading period.
According to a news release, the notice does not result in immediate delisting for the company.
Invacare plans to notify NYSE by Oct. 7 that it intends to cure its stock price deficiency and return to compliance. It can regain compliance any time within the six-month period following the receipt of the notice. This rings true if, on the last day of trading of any calendar month during that period, Invacare closes with shares reaching at least $1 apiece and an average closing price of at least $1 over the 30-day trading period ending on the last trading day of that month.
The company also plans to consider available alternatives. This includes but is not limited to a reverse stock split. That would remain subject to shareholder approval no later than the company’s next annual shareholder meeting. If the company determines this will cure its stock price deficiency, the price condition will be cured if it exceeds $1 per share and remains above that level for at least 30 trading days following shareholder approval.
Shares of Invacare remain listed for trade on the NYSE during this period. This remains subject to compliance with other NYSE continued listing standards.
NYSE noncompliance comes amid restructuring initiative
In March, Invacare said it is taking strategic actions around organizational restructuring and supply chain changes in 2022. Due to the restructuring, the company anticipates lower revenues this year. At that time, shares were listed at $1.71 apiece. Today, Sept. 30, 2022, they stand at 77¢ apiece before the market opened.
Last month, the company removed President and CEO Matthew Monaghan from the corner office. He remains a member of the Invacare board of directors. The company said it made the changes to advance its business transformation initiatives, address supply chain challenges and strengthen its financial performance.