Regional Health Properties’ compliance plan accepted by stock exchange

Atlanta-based Regional Health Properties’s plan to regain compliance with the New York Stock Exchange’s continued listing standards had been accepted, the company announced this week. RHE now has until Nov. 10, 2024, to come into compliance or face delisting. 

The self-managed healthcare real estate investment company, which primarily invests in senior living and skilled nursing real estate, had received notices in May and June that it was not in compliance with some of the stock exchange’s continued listing standards.

The May notice involved a standard that a listed company have shareholder equity of at least $4 million if it has reported losses from continuing operations or net losses in three of its four most recent fiscal years. The June notice, on the other hand, referred to a standard that requires a listed company to have shareholder equity of at least $2 million if it has reported losses from continuing operations and/or net losses in two of its three most recent fiscal years

RHE reported shareholder equity of approximately $1.8 million as of March 31 and has had losses from continuing operations and/or net losses in two of its three most recent fiscal years ended Dec. 31.

“The Exchange has granted the company a plan period through Nov. 10, 2024 to regain compliance with the continued listing standards. If the company is not in compliance with the continued listing standards by that date or if the company does not make progress consistent with the plan during the plan period, the Exchange may commence delisting procedures,” the company said Monday.

RHE’s common stock and Series A redeemable preferred shares will continue to trade under the symbols “RHE” and “RHE-PA,” respectively, but each will continue to use an added designation of “.BC” to indicate that the company is not in compliance with the exchange’s continued listing standards.

RHE announced last week that that its 12.5% Series B cumulative redeemable preferred shares began trading on the OTCQB Venture Market, operated by the OTC Markets Group, under the symbol “RHEPB.”