Obsidian Energy Ltd. (OBE) Receives Continued Listing Standard Notification from NYSE on Price of Shares

March 12, 2018 5:12 PM EDT
Get Alerts OBE Hot Sheet
Price: $0.16 --0%

Overall Analyst Rating:
    BUY (= Flat)

Trade Now! 
Join SI Premium – FREE

Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.

OBSIDIAN ENERGY LTD. (NYSE - OBE) ("Obsidian Energy", the "Company", "we", "us" or "our") announces that it received notification on March 12, 2018 from the New York Stock Exchange (the "NYSE") that Obsidian Energy is no longer in compliance with one of the NYSE's continued listing standards because the average closing price of Obsidian Energy's common shares was less than US$1.00 per share over a consecutive 30 trading day period. As of March 8, 2018, the average closing price of Obsidian Energy's common shares over the preceding consecutive 30 trading day period was US$0.99 per share. The issuance of the notification is not discretionary and is sent automatically when a listed company's share price falls below the NYSE's minimum price listing standard.

As described in our press release dated March 7, 2018, Obsidian Energy will propose a consolidation of the Company's outstanding common shares at the upcoming Annual General Meeting. Obsidian Energy believes that a share consolidation will reduce its outstanding equity float to a level more suitable to the current size of the Company and appeal to a broader universe of investors. The proposed consolidation also seeks to remedy our non-compliance with the NYSE's minimum share price listing standard.

Under the NYSE's rules, Obsidian Energy can avoid delisting if, within six months from the date of the NYSE notification, its common shares have a closing price on the last trading day of any calendar month and a concurrent 30 trading day average closing price of at least US$1.00 per share. Therefore, the price condition following the proposed consolidation is cured if the common share price promptly exceeds US$1.00 and remains above that level for at least the following 30 trading days. If at the expiration of the applicable cure period Obsidian Energy has not regained compliance, the NYSE will commence suspension and delisting procedures.

Non-compliance with the NYSE's price listing standard does not affect Obsidian Energy's business operations or its reporting requirements to the U.S. Securities and Exchange Commission (the "SEC"), nor does it breach or cause an event of default under any of Obsidian Energy's agreements with its lenders. Obsidian Energy continues to be in compliance with the terms of all of those agreements. In addition, non-compliance with the NYSE price listing standard does not affect the continued listing and trading of Obsidian Energy's common shares on the Toronto Stock Exchange (the "TSX").

Obsidian Energy intends to notify the NYSE within 10 business days from the date of the notification that it intends to cure this price deficiency and return to compliance with the NYSE's price listing standard prior to the expiration of the applicable cure period.

Obsidian Energy's common shares will continue to be listed and traded on the NYSE during the applicable cure period, subject to compliance with the NYSE's other continued listing standards, under the symbol "OBE", but the NYSE will assign a ".BC" indicator to the symbol to denote that Obsidian Energy is below the NYSE's price listing standard. This indicator will be removed at such time as Obsidian Energy is deemed compliant with the NYSE's price listing standard.

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In

Related Categories

Corporate News

Related Entities