Diversified Healthcare Trust faces potential Nasdaq delisting

The Nasdaq stock market has issued a warning to Newton, MA-based Diversified Healthcare Trust that it must  boost its stock price above $1 per share or face delisting, the real estate investment trust announced Monday.

A dollar is the minimum required closing bid price for continued listing on Nasdaq. For at least 30 days before the notification, the bid price of the real estate investment trust’s stock price had fallen below $1.

DHC has been operating at a loss for at least the past two fiscal years, Seeking Alpha reported in December.  

The REIT has until July 18 to come into compliance with the minimum bid price continued listing standard. To regain compliance, the closing bid price of the common shares must be at least $1 per common share for at least 10 consecutive business days during the 180 calendar day grace period between now and May 8.

“We are monitoring the bid price of our common shares and are considering options available to us to achieve compliance with the minimum bid price continued listing standard,” DHC said in its filing.

If the REIT is not in compliance by the July 18, deadline, it could receive a second 180 calendar day grace period. 

“To qualify for this additional time, we will be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for Nasdaq with the exception of the minimum bid price requirement,” DHC said. “If we do not regain compliance within the allotted period(s), including any extensions that we may receive, Nasdaq will provide notice that our common shares will be subject to delisting.”

Newton, MA-based AlerisLife is facing a similar situation, as McKnight’s Senior Living previously reported. The company has until May 8 to come into compliance with the minimum bid price continued listing standard.

AlerisLife, through its Five Star Senior Living operating division, managed 120 senior living communities in the DHC portfolio as of November, according to an investor presentation posted on the DHC website. Management services to both DHC and AlerisLife are provided by Newton, MA-based RMR Group.