The financial challenges of Houston’s Nine Energy Service, Inc. have resulted in the firm being warned of noncompliance with the New York Stock Exchange.
The company announced it was informed April 30 of the noncompliance of the NYSE rules because its average closing prices of common stock had fallen below $1 a share over a period of 30 consecutive trading days. It remained there on Friday when the company saw its stock closing at 89 cents with a 4-cent or nearly 5% gain for the day.
Nine’s 52-week high was $2.30 while its low trading mark for the same time frame was 70 cents per share.
Under the NYSE’s rules, the Company can regain compliance with the minimum share price requirement at any time within the six-month period following receipt of the NYSE notification if on the last trading day of any calendar month during the six-month cure period, the Company’s common stock has (i) a closing price of at least $1.00 per share and (ii) an average closing price of at least $1.00 per share over the 30 trading-day period ending on the last trading day of such month.
In the announcement, Nine stated that its Board of Directors is reviewing all available alternatives to regain compliance with the NYSE’s minimum share price requirement, including, but not limited to, a reverse stock split, subject to stockholder approval no later than at the Company’s next annual meeting of stockholders, if necessary to cure the stock price non-compliance. Under the NYSE’s rules, if the Company determines that it will cure the stock price deficiency by taking an action that will require stockholder approval, the Company must obtain the stockholder approval by no later than its next annual meeting of stockholders and implement the action promptly thereafter, and the price condition will be deemed cured if the price promptly exceeds $1.00 per share and the price remains above that level for at least the following 30 trading days.
During the cure period, subject to the Company’s compliance with other NYSE continued listing requirements, shares of the Company’s common stock will continue to be traded on the NYSE under the symbol “NINE” with an added designation of “.BC” to indicate that the Company currently is not in compliance with the NYSE’s continued listing requirements. If the Company is unable to regain compliance, the NYSE will initiate procedures to suspend and delist the Company’s common stock.
The NYSE notification does not affect the Company’s business operations or its Securities and Exchange Commission reporting requirements and does not result in a default under any of the Company’s material debt agreements.
The Texas company will release its first quarter 2025 financial results this week. In the fourth quarter, the company had revenues of $141.4 million and a net loss of $8.8 million or 22 cents a share. For all of 2024, Nine had $554.1 million in revenues and a net loss of $41.1 million or $1.11 per share.
In March, the company announced a reduction in the size of its Board of Directors from 8 to 6 members and stated “and a change in its composition will be beneficial to the company and its strategic priorities moving forward.”