Furniture Brands facing NYSE delisting
Larry Thomas -- Furniture Today, July 22, 2013
ST. LOUIS - Furniture Brands International said it has been notified by the New York Stock Exchange that it had fallen below the exchange's market capitalization requirements and could be de listed.
The company said it was told by the NYSE that it doesn't meet the listing requirements because average market capitalization has been less than $50 million for 30 consecutive trading days, and shareholders' equity was less than $50 million.
Market capitalization is calculated by multiplying the number of outstanding shares by the stock price.
Under NYSE rules, the company has 45 days to submit a plan to achieve compliance with the listing standards within 18 months, and Furniture Brands said it intends to submit such a plan.
If the plan is approved, shares would continue to be traded on the NYSE during the 18-month period.
The exchange threatened to de list the company in December when its stock price fell below $1 per share, but the price moved above that level in January and February.
Furniture Brands instituted a 1-for-7 reverse stock split in May in an effort to consistently keep the price above $1.