Altisource Asset Management Corporation Reports Receipt of Communications From NYSE American
On May 31, 2024, Altisource Asset Management (AAMC) received a notification letter from NYSE American indicating non-compliance with listing standards due to stockholders' equity as of March 31, 2024, and consecutive fiscal year losses ending December 31, 2023. To avoid delisting, AAMC must submit a compliance plan by June 30, 2024, demonstrating how it will meet the standards by December 1, 2024. If accepted, AAMC will continue listing subject to periodic review. Failure to submit or adhere to an accepted plan may result in delisting. Currently, AAMC's stock remains listed but marked as below compliance.
AAMC received additional time to regain compliance with NYSE listing standards.
The company's management is proactively analyzing submission plans to meet the compliance deadline.
AAMC's shares remain listed and traded on NYSE American under the symbol 'AAMC.'
Not in compliance with NYSE American's stockholders' equity requirements as of March 31, 2024.
Reported losses from continuing operations and net losses over the last five fiscal years ending December 31, 2023.
Failure to submit an acceptable compliance plan by June 30, 2024, or to meet the plan's requirements, may result in delisting.
Shares marked with '.BC' to indicate below compliance status.
Uncertainty if AAMC can achieve compliance within the required timeframe.
Insights
Altisource Asset Management Corporation receiving a non-compliance notice from the NYSE American is a significant event. It highlights potential financial instability that could impact shareholders. The fact that the company has reported losses over the last five fiscal years and has insufficient stockholders' equity is critical. This situation suggests a fundamental weakness in their financial health. Investors should be cautious, as failure to submit or execute an acceptable compliance plan by the NYSE deadline could lead to delisting, which would severely affect liquidity and stock value.
Short-term implications include a potential hit to the stock price due to reduced investor confidence, compounded by the '.BC' designation indicating below compliance status. Long-term implications hinge on the company's ability to turn around its financial performance. If they manage to regain compliance, the stock might recover, but this is uncertain and carries risk.
From a market perspective, the receipt of the NYSE American’s notice places Altisource Asset Management Corporation in a precarious position. The market typically responds negatively to such news, which could lead to increased volatility and a drop in share prices. Investors might see this as an opportunity to buy at a lower price if they believe in the company's long-term recovery strategies, but it comes with considerable risk.
The '.BC' designation is also likely to affect the market perception. It signals financial distress to the broader market, potentially leading to a sell-off. Investors should carefully monitor the company's progress on submitting and executing their compliance plan, as well as any strategic moves they announce to address their financial problems.
CHRISTIANSTED,
In order to maintain the Company’s listing on the NYSE American, the NYSE American has requested that the Company submit a plan of compliance (the “Plan”) by June 30, 2024, addressing how the Company intends to regain compliance with Sections 1003(a)(ii) and (iii) of the NYSE American Company Guide by December 1, 2024.
The Company’s management has begun its analysis regarding submission of the Plan to the NYSE American by the June 30, 2024 deadline. If the NYSE American accepts the Company’s Plan, the Company will be able to continue its listing during the Plan period and will be subject to continued periodic review by the NYSE American staff. If the Plan is not submitted, or not accepted, or is accepted but the Company does not make progress consistent with the Plan during the Plan period, the Company will be subject to delisting procedures as set forth in the NYSE American Company Guide.
The Company is committed to considering available options to regain compliance with the NYSE American’s stockholders’ equity requirements. There can be no assurance that the Company will be able to achieve compliance with the NYSE American’s continued listing standards within the required time frame.
The notice has no immediate impact on the listing of the Company’s shares of common stock, which will continue to be listed and traded on the NYSE American during this period, subject to the Company’s compliance with the other listing requirements of the NYSE American. The common stock will continue to trade under the symbol “AAMC,” but will have an added designation of “.BC” to indicate the status of the common stock as “below compliance.” The notice does not affect the Company's ongoing business operations or its reporting requirements with the Securities and Exchange Commission.
About AAMC
AAMC is a private credit provider that originates alternative assets to provide liquidity and capital to under-served markets. AAMC works to employ capital light operating strategies that have historically been implemented across a variety of industry sectors. The Company currently also focuses on the development and licensing of a control system which increases the efficiency of electric vehicles. The Company acquired a non-exclusive license for a set of patents for a control system which seeks to optimize the efficiency of electric vehicles. Additional information is available at www.altisourceamc.com.
Forward-looking Statements
This press release and the attachments thereto contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “targets,” “predicts,” or “potential,” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions. The forward-looking statements contained in this release reflect our current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause our actual business, operations, results or financial condition to differ significantly from those expressed in any forward-looking statement.
Factors that may materially affect such forward-looking statements include, but are not limited to:
- Our ability to develop and implement new businesses or, to the extent such businesses are developed, our ability to make them successful or sustain the performance of any such businesses;
- Current inflationary economic and macro-economic and geopolitical events, and market conditions that can affect our businesses;
- Our ability to develop and implement a new business with respect to that certain non-exclusive patent and technology licensing agreement entered into on October 6, 2023 and that the Company will achieve its expectations with respect to the patents and other intellectual property associated therewith;
- Our ability to monetize our existing loan portfolio; and
- The failure of our information technology systems, a breach thereto, and our ability to integrate and improve those systems at a pace fast enough to keep up with competitors and security threats.
While forward-looking statements reflect our good faith beliefs, assumptions, and expectations, they are not guarantees of future performance. Such forward-looking statements speak only as of their respective dates, and we assume no obligation to update them to reflect changes in underlying assumptions, new information or otherwise. For a further discussion of these and other factors that could cause our future results to differ materially from any forward-looking statements contained herein, please refer to the section “Item 1A. Risk Factors” contained in the Company’s 2023 Annual Report on Form 10-K.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240606473816/en/
Charles Frischer
T: +1-813-474-9047
E: charles.frischer@altisourceamc.com
Source: Altisource Asset Management Corporation
FAQ
Why did AAMC receive a notification from NYSE American?
When does AAMC need to submit a compliance plan to NYSE American?
What will happen if AAMC fails to submit a compliance plan?
Will AAMC shares continue to be traded during the compliance period?
Does the NYSE American notice affect AAMC's business operations?
