USA- The New York Stock Exchange has notified Benson Hill, a food technology company, that it is not in compliance with the NYSE’s continued listing standards due to the company’s stock price falling below US$1 per share for a consecutive 30-day trading period.
Benson Hill, which commenced trading on the NYSE in February 2021 at a price of US$11 per share, now has a six-month period to regain compliance or face delisting from the NYSE.
Despite starting to trade at a price of US$11 per share, the stock experienced a decline of approximately 40% in value and was trading within the mid-US$6 range by October 2021.
A year after its debut, in February 2022, Benson Hill’s share price was around US$3 per share and its share price dipped below US$1 for the first time in early April 2023.
On August 11, 2023, it closed at 86 cents per share and has been below US$1 ever since, reaching as low as 51¢ on Sept. 15.
“The company intends to consider a number of available alternatives to cure its non-compliance with the applicable price criteria in the NYSE’s continued listing standards,” Benson Hill commented.
Benson Hill added that the company is undergoing a strategic review process to maximize its full potential and capitalize on its technological competitive advantages.
“Management expects to share an update with investors on progress related to this strategic review, the strength of its proprietary product portfolio, and cost and liquidity improvement initiatives by late October.”
Becoming compliant
There are two ways that Benson Hill could regain compliance with the NYSE’s minimum share price requirement at any time during the six-month cure period.
One option is if, on the last trading day of any calendar month during the cure period or on the last day of the cure period, it has a close share price of at least US$1
The second way is if the company has an average closing share price of at least US$1 over the 30-day trading period ending on the last trading day of that month, or on the last day of the cure period.
Benson Hill sustained a loss of more than US$127 million in fiscal 2022 on revenues of US$381.23 million, which compared with a loss of US$126.25 million on revenues of US$90.95 million in fiscal 2021.
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