Basic Energy Services (BAS) Receives NYSE Listing Notification
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Basic Energy Services, Inc. (NYSE: BAS) announced the receipt on August 19, 2016 of formal notice of non-compliance (the "NYSE Notice") with the New York Stock Exchange (the "NYSE") market capitalization and share price continued listing standards. Section 802.01B of the NYSE Listed Company Manual (the "Manual") prohibits the Company's average global market capitalization over a consecutive thirty trading-day period from being less than $50,000,000 at the same time its stockholders' equity is less than $50,000,000. Section 802.01C of the Manual requires the average closing price of the Company's common shares to be at least $1.00 per share over a consecutive thirty trading-day period. As noted in the NYSE Notice, as of August 18, 2016, the average closing price of Basic's common shares over the preceding 30 trading-day period was $0.98 per share, the average global market capitalization over the preceding thirty trading-day period was approximately $41.7 million and the last reported stockholders' deficit was approximately ($62.4) million as of June 30, 2016.
Basic has ten business days from receipt of the NYSE Notice to send a letter to the NYSE confirming receipt of the NYSE Notice and its intent to cure the deficiencies. Upon submission of such a letter, Basic would then submit a business plan within 45 days that demonstrates compliance with the market capitalization and stockholders' equity listing standard within eighteen months following the NYSE Notice. Upon receipt of such plan, the NYSE would have 45 calendar days to review and determine whether Basic has made reasonable demonstration of its ability to come into conformity with the relevant standards within the eighteen-month period. The NYSE will either accept the plan, at which time Basic would be subject to ongoing quarterly monitoring for compliance with the plan, or the NYSE will not accept the plan and Basic would be subject to suspension and delisting proceedings.
Basic has a period of six months from the date of the NYSE Notice to regain compliance with the minimum share price criteria by bringing its share price and thirty trading-day average share price above $1.00. Basic can regain compliance at any time during the six-month cure period if Basic's common shares have a closing price of at least $1.00 per common share on the last trading day of any calendar month during the cure period and an average closing price of at least $1.00 per common share over the thirty-trading day period ending on the last trading day of that month.
Under the NYSE rules, Basic's common shares will continue to be listed and traded on the NYSE during the cure periods outlined above, subject to Basic's compliance with other continued listing requirements. The current noncompliance with the NYSE listing standards does not affect Basic's ongoing business operations or its U.S. Securities and Exchange Commission reporting requirements, nor does it trigger any violation of its material debt or other obligations. Basic is considering all available options to regain compliance with the NYSE's continued listing standards. Basic can provide no assurances that it will be able to satisfy any of the steps outlined above and maintain the listing of its shares on the NYSE.
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