KENNETT SQUARE, PA — Genesis HealthCare (NYSE: GEN), one of the largest post-acute care providers in the United States, announced that it received written notification from the New York Stock Exchange on April 17, 2020, that it is not in compliance with the NYSE continued listing standard that requires a minimum average closing price of Genesis’ common stock of $1.00 per share over a consecutive 30 trading-day period.
The Company is, however, in compliance with the NYSE minimum market capitalization threshold of $50 million over a 30 trading-day period. Currently, Genesis’ market capitalization is more than two times this threshold.
Receipt of the Notice by Genesis is not a violation of the terms of, and does not constitute a default or event of default under, any of Genesis’ debt or lease agreements.
The Notice also has no immediate impact on the listing of Genesis’ common stock, which will continue to be listed and traded on the NYSE during the applicable cure period under the symbol “GEN,” subject to Genesis’ compliance with other continued listing requirements set forth in the NYSE Listed Company Manual, but will have an added designation of “.BC” to indicate the status of the common stock as below compliance with the NYSE continued listing standards. The “.BC” indicator will be removed at such time as Genesis is deemed compliant.
Pursuant to NYSE rules, Genesis can regain compliance with the minimum share price requirement if, during the six-month cure period, on the last trading-day of any calendar month, Genesis’ common stock has a closing share price and a 30 trading-day average closing share price of at least $1.00.
On April 23, 2020, Genesis received an update from the NYSE notifying Genesis that in response to the COVID-19 pandemic and related extraordinary market conditions, the compliance period for any company previously notified about noncompliance with the minimum share price requirement will be suspended and resume on July 1, 2020.
Therefore, Genesis’ compliance period has been extended until December 26, 2020.
Genesis will notify the NYSE on or before May 1, 2020 that it intends to cure the continued listing standard deficiency. Should Genesis’ common stock price not meet the requirements during the cure period, Genesis will consider further options to cure this deficiency.
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