On Dec. 5, 2016, Walter Investment Management Corp.’s stock closed at $7.35.
Since then, the nonbank’s stock dropped precipitously. So much so, in fact, that the stock is now trading well below $1.
Walter Investment disclosed late Friday that it received a notice from the New York Stock Exchange after the company’s shares closed at an average price of less than $1 for a consecutive 30 trading-day period.
Because Walter’s stock fell so low, the NYSE issued a warning stating the company is no longer in compliance with the stock exchange’s rules.
Specifically, the nonbank said that it is non-compliant with Rule 802.01C of the NYSE Listed Company Manual.
Walter now has six months to get back into compliance with the NYSE rules, i.e. get its stock back up over $1.
The company said that it plans to tell the NYSE that it intends to “seek to cure the deficiency” within the six-month timeframe.
According to Walter, the company can regain compliance if, at any time in the six-month period following receipt of the notice, the closing price of its common stock on the last trading day of any month is at least $1 and the 30 trading-day average closing price of its common stock on that day is also at least $1.
Walter said that it is currently considering “various options” that it may take in an effort to get back into compliance with the NYSE rules.
The company adds that if it decides to address the stock price deficiency by taking a corporate action that would require approval by its shareholders, the six-month cure period may be extended to allow the shareholders to vote at the company’s annual meeting.
The company’s stock closed Friday’s trading at $0.77 and has not closed above $1 since June 28, when it closed at $1.01.