Finance of America Companies (FOA), parent company of reverse mortgage industry-leading lender Finance of America Reverse (FAR), was notified on Dec. 12 by the New York Stock Exchange (NYSE) that it was not in compliance with the exchange’s continued listing standard. This is according to an announcement from FOA issued on Friday.
“[NYSE] requires that companies with shares listed on the NYSE comply with the NYSE’s continued listed standards,” the announcement said. “The NYSE’s continued listing standards include the requirement […] that the average closing price of a security is not less than $1.00 over a consecutive 30 trading-day period.”
If the average closing price is less than $1.00 over a consecutive 30 trading-day period, then NYSE “provides for a six month cure period to regain compliance,” the announcement said.
Compliance with the listing standard can be regained “if on the last trading day of any calendar month during the cure period (or the last trading day of the cure period) the security has a closing share price of at least $1.00 and an average closing share price of at least $1.00 over the prior 30 trading-day period,” the announcement explained.
The company may determine that curing the price may take an action that requires shareholder approval. If that is the case for FOA, it will have to notify NYSE and obtain shareholder approval “by no later than its next annual meeting and implement the action promptly thereafter.”
The price will be cured if it exceeds $1.00 per share, and remains above that level for 30 trading days thereafter.
FOA received the notice from NYSE earlier this week, since the average price of its shares as of Dec. 11 was below $1.00 per share over a consecutive 30 trading-day period.
“Finance of America plans to notify the NYSE within ten business days of its receipt of the notice that it intends to bring the company into compliance with this listing standard within the six month cure period,” the announcement said.
When reached, a spokesperson for FOA reiterated to RMD that it intends to bring its stock into compliance.
“Finance of America’s leadership remains focused on generating enhanced enterprise value for all stakeholders and ensuring the company’s long-term success,” a company spokesperson told RMD in a statement. “We intend to comply with NYSE listing standards and are actively considering steps to bring the Company back into compliance within the required time period, which we do not anticipate impacting our ongoing business operations.”
As of late day trading on Friday, the company’s stock was trading at $0.97 per share. Over the past 30 days, the share price reached the $1.00 level twice: on Nov. 29 (right at $1.00) and on Dec. 14 ($1.02).
The highest reported level the stock reached was $11.14 per share on Apr. 30, 2021, but this was also in the immediate aftermath of going public.
