Saltık The New York Stock Exchange (NYSE) requires all listed securities to maintain an average closing price of $1 or higher. SOS Limited, a blockchain service provider, has received a noncompliance notice from the NYSE due to its stock price falling below $1 for 30 consecutive trading days.
SOS must elevate its share price and maintain an average above $1 within six months to avoid suspension or delisting.
Immediate Impact on Shareholders
According to SOS, the compliance process allows the company to regain its listing status if it meets the $1 closing price requirement on the last trading day of any calendar month during the six-month period, with an average closing price of at least $1 over the preceding 30 trading days.
The noncompliance notice does not immediately affect the trading status of SOS’s American depositary shares (ADSs), which will remain listed and traded on the NYSE during the cure period, provided other listing requirements are met.
SOS Stock Price Decline
If SOS fails to achieve a closing share price of $1 and an average closing price of $1 by the end of the six-month period, the NYSE will begin suspension and delisting procedures.
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SOS Limited’s share price recently dropped 4.13% to $0.70 in pre-market trading on Nasdaq. As depicted in the accompanying chart, SOS shares briefly hit $1 on May 22 but have since remained below that threshold.
In a similar case, the NYSE had previously warned crypto custody and trading platform Bakkt about potential delisting if it did not increase its average closing share price above $1. Bakkt faced the same noncompliance issue with its share price closing below $1 on average over a 30-day trading period.
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