J.C. Penney Could be Delisted from the NYSE

Struggling retailer J.C. Penney is facing a delisting from the New York Stock Exchange.

The department store chain saw its stock trade under $1 for a period of 30 consecutive business days and shares hit as low as 69 cents at Thursday’s close.

The stock has tanked over 70% just this past year alone.

J.C. Penney announced that it has received notice on Tuesday tha tit has six months to regain compliance with
the requirement. The company said it will consider a reverse stock split at its next shareholder’s meeting to get its share price above $1.

If this doesn’t happen on its own before then. J.C. Penney said it will notify the exchange in the next 10 business days of the plan.

J.C. Penney’s full press release reads:

J. C. Penney Company, Inc. (NYSE: JCP) announced today that it received notification from the New York Stock Exchange (NYSE) on Aug. 6, 2019, that the Company is no longer in compliance with NYSE continued listing criteria, which require listed companies to maintain an average closing share price of at least $1.00 over a consecutive 30 trading-day period.

In accordance with NYSE rules, the Company has a period of six months from receipt of the notice to regain compliance with the NYSE’s minimum share price requirement, or until the Company’s next annual meeting of stockholders if stockholder approval is required to cure the share price non-compliance, as would be the case to effectuate a reverse stock split. Under NYSE rules, the Company’s common stock will continue to be listed and trade on the NYSE during this period, subject to the Company’s compliance with other NYSE continued listing requirements. The Company plans to notify the NYSE within 10 business days of receipt of the notification of its intent to cure the deficiency. The Company is in compliance with all other NYSE continued listing standard rules.

The Company intends to pursue measures to cure the share price non-compliance, including through a reverse stock split of the Company’s common stock, subject to stockholder approval, no later than at its next annual meeting of stockholders, if such action is necessary to cure the share price non-compliance.

The NYSE notification does not affect the Company’s business operations or its Securities and Exchange Commission reporting requirements, and it does not conflict with or cause an event of default under any of the Company’s material debt or other agreements.

Disclaimer: We have no position in J C Penney Company Inc. (NYSE: JCP) and have not been compensated for this article.