NYSE To Delist Thornburg Shares
Super-jumbo and ultra-prime mortgage lender Thornburg Mortgage, Inc. ($0.00 0%) is about to lose its spot on the New York Stock Exchange, according to a company statement Wednesday morning. The company said that its stock has been suspended from trading and will be delisted for failing to meet the NYSE's $1.00 rule; the exchange requires company stocks to maintain an average closing price of greater than $1.00 over a consecutive 30-day period.
Thornburg's said it does not plan to appeal the ruling, and indicated it would not take steps to boost its share price to remain on the Big Board. It expects its shares to be quoted on the OTC Bulletin Board and/or the Pink Sheets following suspension from the NYSE, it said.
The company stressed that its pending delisting from the NYSE did not constitute a default under the company's lending arrangements, and will not change the company's filing of periodic and other reports with the Securities and Exchange Commission.
That said, the sheer cliff-diving seen in TMA's stock during the past year is absolutely stunning to consider. One year ago, the company's stock was trading at $106.50 per share: in pre-market trading Wednesday, shares were down 23 percent to just 23 cents.
Thornburg fell into hard times last year when margin calls from investor drained the firm's liquidity. It has been struggling to remain afloat ever since.
Write to Paul Jackson at email@example.com.
Disclosure: The author held no relevant investment positions when this story was published. Indirect holdings may exist via mutual fund investments. HW reporters and writers follow a strict disclosure policy, the first in the mortgage trade.
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