SOS Limited, the blockchain and cryptocurrency company that also dabbles in commodity trading, is in trouble with the New York Stock Exchange (NYSE).
The NYSE hit SOS with a letter, telling them they’ve fallen below compliance standards. The problem? Their American depositary shares (ADSs) have been trading like crap, averaging less than $1.00 over a 30-day trading period.
According to NYSE rule 802.01C, if your stock can’t keep its head above the $1.00 mark for 30 days straight, you’re in trouble. The company now has six months to fix this mess and get their average share price back to at least $1.00.
If SOS doesn’t manage to pull this off by the end of that period, they’re looking at suspension and delisting. Not a great place to be if you want to keep your stock on one of the biggest exchanges in the world.
So, what’s next for SOS? Well, they’ve got six months to get their act together. The NYSE is giving them a chance to turn things around, but it’s not going to be easy.
The rules are pretty clear. They need to get their share price up to at least $1.00 on the last trading day of any month within the cure period. And not just for one day either—they need to average $1.00 over a 30-day period.
SOS also needs to show consistent improvement, and that means keeping their share price at or above the $1.00 mark for an entire month. If they can do that, they’ll be back in compliance with the NYSE’s rules.
But if they can’t, the NYSE will start the suspension and delisting process. That’s the last thing any company wants to deal with, especially one that’s already struggling to keep its stock price above water.
For now, SOS’s shares will continue to be traded on the NYSE. The notice they received doesn’t mean they’re getting booted off the exchange right away. The NYSE isn’t pulling the plug just yet.
Source: https://www.cryptopolitan.com/sos-limited-is-in-trouble-with-the-nyse/