As a company, maintaining a listing on the NYSE American can provide valuable access to capital markets, investors, and other benefits. However, this also means that the NYSE American has certain standards and requirements that companies must meet to maintain their listing. Failure to meet these standards may result in delisting from the exchange, which can have significant consequences for a company’s operations and reputation.
In this blog post, we’ll provide an overview of the NYSE American delisting standards, including both quantitative and qualitative requirements, to help companies understand what they need to do to maintain their listing.
Quantitative Delisting Standards
The NYSE American has several quantitative standards that companies must meet to maintain their listing. These include:
- Minimum price per share: Companies must maintain a minimum average closing price of $1.00 over a consecutive 30-day trading period. This means that the company’s stock must not fall below this threshold for an extended period of time.
- Minimum market capitalization: Companies must have a market capitalization of at least $50 million over a consecutive 30-day trading period. Market capitalization is calculated by multiplying the company’s share price by the number of outstanding shares.
- Minimum stockholders’ equity: Companies must maintain stockholders’ equity of at least $4 million. This represents the residual value of a company’s assets after its liabilities have been paid.
- Minimum public float: Companies must have at least 1 million publicly held shares outstanding, with a market value of at least $2.5 million. This ensures that there is sufficient liquidity in the company’s stock for investors to buy and sell.
If a company fails to meet any of these quantitative standards, it will be notified by the NYSE American and given a certain period of time to regain compliance. If the company fails to regain compliance within the specified period, it may be delisted.
Qualitative Delisting Standards
In addition to quantitative standards, the NYSE American also has several qualitative standards that companies must meet to maintain their listing. These include:
- Non-compliance with financial standards: If a company fails to meet any of the quantitative standards, it will be notified by the NYSE American and given a certain period of time to regain compliance. If the company fails to regain compliance within the specified period, it may be delisted.
- Non-compliance with corporate governance standards: Companies must comply with certain corporate governance requirements, such as having a majority of independent directors on its board or maintaining an audit committee comprised solely of independent directors. Failure to comply with these requirements may result in delisting.
- Other issues: The NYSE American may delist a company if it fails to meet other requirements or if there are other issues that the exchange determines make continued listing on the exchange inappropriate.
Maintaining a listing on the NYSE American can provide significant benefits for companies, but it also comes with certain responsibilities. Companies must meet both quantitative and qualitative delisting standards to maintain their listing, and failure to do so can have significant consequences. It’s important for companies to understand these requirements and take steps to ensure compliance to avoid being delisted from the exchange.
If you have questions about NYSE American delisting standards or need assistance with compliance, contact our law firm for guidance and support.