Another offshore drilling contractor, Valaris, has seen its share worth fall under $1 as its operations and contracts are getting delayed or cancelled amid difficult market state of affairs, together with traditionally low oil costs and coronavirus pandemic.
Valaris stated on Tuesday it had obtained on 15 April 2020 a discover from the New York Stock Exchange (NYSE) of its non-compliance with continued itemizing requirements as a result of the typical closing value of its Class A abnormal shares over a previous 30-day consecutive buying and selling interval had fallen under $1 per share, which is the minimal common closing value per share required to take care of the itemizing on the NYSE.
Valaris is the fourth drilling contractor to obtain such discover from the NYSE within the final two months. First, it was Noble Corporation, adopted by Seadrill after which Pacific Drilling.
As required by the NYSE, Valaris has notified the NYSE of its intent to remedy the deficiency and restore its compliance with the NYSE continued itemizing requirements.
In normal, a listed firm has a interval of six months following the receipt of the discover to regain compliance.
In order to regain compliance, on the final buying and selling day in any calendar month through the remedy interval, the corporate’s shares should have a closing value of at the very least $1 per share and a mean closing value of at the very least $1 per share over the 30 buying and selling day interval ending on the final buying and selling day of such month.
If the corporate determines that, with the intention to remedy the deficiency, it’s essential to take an motion that requires shareholder approval, the worth situation shall be deemed cured if the worth promptly exceeds $1 per share after taking such motion, and the worth stays above the extent for at the very least the next 30 buying and selling days.
During this era, topic to Valaris’ compliance with different NYSE continued itemizing necessities, the shares will proceed to be traded on the NYSE underneath the image “VAL” however could have an added designation of “.BC” to point the standing of the shares as under compliance.
If Valaris is unable to regain compliance, the NYSE will provoke procedures to droop and delist shares.
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