Trio Petroleum Announces Notice of Noncompliance with NYSE American Listing Standards
- None.
- The deficiency letter from NYSE American indicates that Trio Petroleum Corp is not in compliance with the continued listing standards due to the low price per share for a substantial period of time.
- The Company may need to resort to a reverse stock split if its common stock does not trade at a consistent level to regain compliance by August 26, 2024.
The notification received by Trio Petroleum Corp from the NYSE American regarding non-compliance with the listing standards, particularly related to the low trading price of its common stock, is indicative of underlying financial stress or market skepticism about the company's value and prospects. A prolonged low stock price can erode investor confidence and make it difficult for the company to raise capital through equity markets. The consideration of a reverse stock split is a tactical move often employed to bolster the stock price by reducing the number of shares outstanding, thereby increasing the price per share. However, this does not inherently change the company's market capitalization or address the fundamental issues causing the low stock price. Investors should monitor the company's operational performance in the McCool field closely, as its success or failure could significantly impact the stock's future trajectory and the company's ability to maintain its listing status.
From a market perspective, Trio Petroleum Corp's strategy to initiate operations in the McCool field represents a potential pivot point for the company. The oil and gas sector is highly sensitive to changes in commodity prices, geopolitical events and shifts in supply and demand. The successful exploitation of a new field could materially improve the company's revenue streams and profitability. However, the market's response to such operational changes is often tempered by the execution risk and capital expenditure associated with bringing a new field online. Market participants will likely watch for production updates, cost management and any changes in the broader energy market that could influence the project's outcome. The company's ability to leverage the McCool field operations to positively affect its stock price will be critical to its efforts to regain compliance with the NYSE American's listing standards.
Legally, the receipt of a deficiency notice from a stock exchange is a formal warning that can have significant implications for a publicly traded company. While it does not immediately impact Trio Petroleum Corp's business operations or SEC reporting obligations, it does trigger a compliance timeline that the company must adhere to. Failure to demonstrate sustained price improvement by the specified deadline could lead to delisting, which would severely limit the company's access to public capital markets and potentially lead to a loss of institutional investment. It is crucial for the company to communicate its strategy and progress transparently to shareholders and the market to maintain trust and credibility during this compliance period. Any proposed corporate actions, such as a reverse stock split, would require shareholder approval and must be carefully structured to comply with securities laws and regulations.
Bakersfield, CA, March 01, 2024 (GLOBE NEWSWIRE) -- Trio Petroleum Corp (NYSE American: TPET) (“TPET”, “Trio” or the “Company”), a California-based oil and gas company, today announced that on February 26, 2024, it received a deficiency letter (the “Notice”) from the NYSE American LLC (the “NYSE American”) indicating that the Company is not in compliance with the continued listing standards as set forth in Section 1003(f)(v) of the NYSE American Company Guide (the “Company Guide”). Specifically, the Notice informed the Company that the NYSE American has determined that the shares of the Company's common stock have been selling for a low price per share for a substantial period of time, and pursuant to Section 1003(f)(v) of the Company Guide, the Company's continued listing is predicated on it demonstrating sustained price improvement by no later than August 26, 2024.
The Company intends to begin the operations in the McCool field, which we expect to be in operation soon, and then monitor the price of its common stock and consider available options, including conducting a reverse stock split, if its common stock does not trade at a consistent level likely to result in the Company regaining compliance by August 26, 2024. The Company’s receipt of the Notice does not affect the Company’s business, operations or reporting requirements with the Securities and Exchange Commission.
About Trio Petroleum Corp
Trio Petroleum Corp is an oil and gas exploration and development company headquartered in Bakersfield, California, with operations in Monterey County, California, and Uinta County, Utah. Trio has a large, approximately 9,267-acre asset called the “South Salinas Project” in Monterey County, California, where it owns an
Cautionary Statement Regarding Forward-Looking Statements
All statements in this press release of Trio Petroleum Corp (“Trio”) and its representatives and partners that are not based on historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Acts”). In particular, when used in the preceding discussion, the words "estimates," "believes," "hopes," "expects," "intends," “on-track”, "plans," "anticipates," or "may," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Acts and are subject to the safe harbor created by the Acts. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of the Trio's control, that could cause actual results to materially and adversely differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth in the Risk Factors section of the Trio’s S-1 filed with the Securities and Exchange Commission (SEC). Copies are of such documents are available on the SEC's website, www.sec.gov. Trio undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
Investor Relations Contact:
Redwood Empire Financial Communications
Michael Bayes
(404) 809 4172
michael@redwoodefc.com
FAQ
Why did Trio Petroleum Corp receive a deficiency letter from NYSE American?
What is the deadline for Trio Petroleum Corp to demonstrate sustained price improvement?
What options is Trio Petroleum Corp considering to improve its share price?
