Months after regaining compliance with the NYSE American stock exchange’s continued listing standards, Atlanta-based Regional Health Properties announced Wednesday that the real estate investment company received a notice May 10 that the company again was not in compliance.
Specifically, RHP is not in compliance with Section 1003(a)(ii) of the standards, which requires that a listed company have shareholders’ equity of $4 million or more if it has reported losses from continuing operations and/or net losses in three of its four most recent fiscal years. RHP reported shareholders’ equity of approximately $3.7 million as of Dec. 31 and has had losses from continuing operations and/or net losses in three of its four most recent fiscal years ended Dec. 31.
“The company is working on a plan to restart its previously launched preferred exchange offer. Once completed, the company should have several options to allow it to regain compliance,” RHP President and CEO Brent Morisson, CFA, told the McKnight’s Business Daily on Thursday.
RHP is required to submit a plan to the exchange by June 9 outlining the steps it intends to take to regain compliance before Nov. 10, 2024. If the company does not submit a plan by the deadline, or if the plan the company submits is not accepted by the exchange, then the company will be subject to delisting proceedings as specified in the American Company Guide.
If the exchange accepts the proposed plan but RHP is not in compliance with the continued listing standards by Nov. 10, 2024, or if the company does not make progress consistent with its plan, then the company also would be subject to delisting proceedings.
If the plan is accepted, then the company also will be subject to periodic reviews, including quarterly monitoring for compliance with the plan.
Until the compliance issue is resolved, the company is on the NYSE’s listing of noncompliant issuers. The company will continue to trade, but its stock offerings will have an added designation of “.BC” to indicate that it is not in compliance with the exchange’s continued listing standards.