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Walter Investment could be booted from NYSE for low stock price, market cap

Nonbank receives delisting notice after market cap stays well below $50 million

On July 14, 2017, Walter Investment Management Corp. disclosed 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.

Walter’s stock closed at $0.77 that day, and since then, things haven’t gotten any better. In fact, they’ve gotten much worse – so much so that Walter is now at risk of being kicked off the NYSE.

On the first day of August, Walter closed at $0.83 per share, but the stock has dropped steadily since then. Last week, the stock began trading at less than 40 cents per share, and has stayed below that mark ever since.

With Walter’s stock trading at prices that low, the company’s market capitalization has fallen down below $12 million.

And the company’s consistently low market cap now has the NYSE threatening the nonbank with delisting.

Walter disclosed late Wednesday that it received written notification from the NYSE that the company was “considered to be non-compliant with the continued listing standards set forth under Rule 802.01B of the NYSE Listed Company Manual,” because Walter’s average market cap was less than $50 million for consecutive 30 trading-day period.

As with the previous notice it received from the NYSE, Walter said that it plans to officially acknowledge that it received the notice and will notify the NYSE of its intention to submit a business plan that will lay out the company’s plan to get back into compliance with NYSE standards.

From there, the NYSE will have 45 days to review Walter’s plan and determine whether the company has made a “reasonable demonstration of its ability to regain compliance” within an 18-month period ending Feb. 11, 2019.

If the NYSE accepts the plan, then Walter stays on the NYSE.

If the stock exchange does not accept the plan, Walter may be subject to suspension and delisting from the NYSE.

“The Company intends to take steps to remedy the listing deficiencies in a timely manner; however, no assurance can be given that the Company will be able to regain compliance with the applicable listing standards or otherwise maintain compliance with the other continued listing standards set forth in the NYSE Listed Company Manual,” Walter cautioned in its announcement.

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