Houston’s Key Energy Services, Inc. has been warned by the New York Stock Exchange it is not in compliance with the Exchange’s continued listing standards.
The company revealed the notification came because over a period of 30 consecutive trading days, the average market capitalization of Key’s common shares was below $50 million. Key’s stockholders’ equity was also less than $50 million as of March 31, 2019. This notice does not have an immediate effect on the listing of Key’s common shares.
In accordance with NYSE rules, Key stated that it intends to timely notify the NYSE that Key intends to cure the deficiency. Under the NYSE rules, Key has 45 days from the receipt of the notification to submit a plan advising the NYSE of definitive action Key has taken, or is taking, that would bring Key into conformity with the continued listed standards within 18 months of receipt of the notification. Key intends to develop and submit a business plan to bring it into compliance with the listing standards within the required timeframe.
Within 45 days of receipt of the plan, the NYSE will make a determination as to whether Key has made a reasonable demonstration of an ability to come into conformity in the 18-month period. If the NYSE accepts the plan, Key’s common shares will continue to be listed and traded on the NYSE during the 18-month cure period, subject to Key’s compliance with other continued listing standards, and Key will be subject to quarterly monitoring by the NYSE for compliance with the plan.
The NYSE notification does not affect Key’s business operations or its Securities and Exchange Commission reporting requirements and does not conflict with or cause an event of default under any of the Company’s material debt or other agreements.
Rob Saltiel, Key’s Chief Executive Officer, said, “This notice from the NYSE will not affect our day-to-day operations nor impact the exceptional services that our employees deliver to our clients. We are committed to pursuing opportunities that will increase the value of Key’s shares and returning to compliance with the NYSE listing standards during the 18-month cure period.”
