Finance of America Receives Second Delisting Notice from NYSE
Finance of America has once again received a delisting notice from the New York Stock Exchange (NYSE), marking the second time in just three months. The notice, sent on February 12, comes after the company failed to meet the requirement of maintaining an average closing price of $1 for 30 consecutive days.
Plans to Regain Compliance and Remain Listed
In response to the delisting notice, Finance of America has announced plans to take action to regain compliance within the six-month cure period. The company intends to notify the NYSE within ten business days of its receipt of the Notice, expressing its intent to bring the company into compliance with the listing standard for continued listing on the NYSE. Finance of America is considering all available options to regain compliance with the NYSE's continued listing standards and remain listed on the exchange.
Struggling to Sustain $1 Mark
Although Finance of America did briefly close above the $1 mark at $1.02 per share on February 15, the stock price fell back below to 98 cents per share on February 16. The company has not been able to sustain the $1 closing price requirement on a consistent basis, which led to the delisting notice from NYSE.
Meeting Compliance Requirements
Finance of America's press release highlighted that compliance can be achieved if the security has a closing share price of at least $1.00 on the last trading day of any calendar month during the cure period, as well as an average closing share price of at least $1.00 over the prior 30 trading-day period.
Focus on Niche Markets
Finance of America underwent restructuring in October 2022, exiting forward mortgage lending to focus on niche markets including reverse mortgages, home improvement lending, and commercial real estate lending. Additionally, the company's Incenter business sold off operations in title insurance.
Fourth Quarter Earnings Announcement Pending
Finance of America has yet to announce the release date for its fourth quarter earnings. Investors and market analysts eagerly await this information, as it may shed light on the company's financial performance amidst ongoing challenges with NYSE compliance.
Analyst comment
Negative news. The delisting notice from the New York Stock Exchange indicates that Finance of America is failing to meet listing requirements. The stock price has fluctuated but has not been sustained above $1. The company plans to take action to regain compliance within the cure period. Market impact: Uncertainty and potential decline in investor confidence.
