Amwell Receives Continued Listing Standard Notice From NYSE
- None.
- The average closing price of Amwell's Class A common stock fell below $1 per share over a consecutive 30 trading-day period, leading to non-compliance with NYSE listing standards.
- Amwell must implement a reverse stock split to address the deficiency and regain compliance with the NYSE's minimum price criteria.
Insights
The notification received by Amwell regarding non-compliance with the NYSE's minimum price criteria is indicative of potential challenges in investor perception and market confidence. A stock price languishing below $1 can often signal broader concerns about a company's financial health, growth prospects, or industry conditions. In this instance, the market may be reacting to underlying issues within the healthcare software as a service sector or specific to Amwell's performance.
From a market trend perspective, a reverse stock split, which Amwell is considering, is a strategy companies often employ to boost the nominal share price. While this does not change the company's market capitalization, it can sometimes improve the stock's marketability and meet exchange listing requirements. However, it's also worth noting that such measures can be perceived negatively by the market as it may be seen as a cosmetic fix rather than addressing fundamental business challenges.
The six-month grace period provides Amwell with a window to strategize and potentially improve its stock performance. Investors should monitor the company's actions closely, including any operational improvements or strategic initiatives that could positively influence its stock price.
Amwell's current stock price situation highlights the importance of liquidity and investor sentiment in the valuation of a company. The notice from NYSE, while not immediately detrimental, does put pressure on Amwell to act swiftly to reassure investors of its value proposition. As the company explores options like a reverse stock split, it's essential to consider the implications for shareholder value.
Investors often look at such compliance notices as a red flag, prompting a closer examination of the company's financial statements, cash flow and growth trajectory. It is important for Amwell to maintain transparent communication with its stakeholders, outlining clear plans for returning to compliance and demonstrating its commitment to sustainable growth and profitability.
In the long-term, Amwell's ability to regain compliance and stabilize its stock price will depend on its operational performance and success in capitalizing on the growth opportunities within the healthcare technology market. Investors will be keen on understanding how the company plans to differentiate itself from competitors and drive user adoption of its platform.
The receipt of a non-compliance notice from the NYSE is a procedural matter that triggers specific disclosure obligations for Amwell. The company's swift disclosure to the public demonstrates compliance with SEC reporting requirements, which is important for maintaining corporate governance standards. It also provides transparency to the market, allowing investors to make informed decisions based on the company's regulatory standing.
While the notice does not immediately affect Amwell's listing, the company must navigate the legal and regulatory framework effectively to regain compliance. This includes preparing for a reverse stock split, which requires board approval and a favorable vote from shareholders at the annual meeting. The legal intricacies of such corporate actions are significant and the company must ensure that all legal requirements are met to avoid further regulatory scrutiny.
For stakeholders, the company's legal approach to addressing this compliance issue, including its adherence to NYSE rules and SEC regulations, will be indicative of its overall commitment to governance and regulatory compliance. Such factors can influence investor confidence and, by extension, stock performance in the long-term.
Amwell’s Class A Common Stock continues to trade on the NYSE
Boston, April 04, 2024 (GLOBE NEWSWIRE) -- Amwell® (NYSE: AMWL), a leading provider of healthcare software as a service, today announced that it received a notice on April 2, 2024 from the New York Stock Exchange (NYSE) informing the company that it is not in compliance with the NYSE’s continued listing minimum price criteria with respect to its Class A common stock because the average closing price of the company’s Class A common stock was less than
NYSE rules give Amwell a six-month period to regain compliance with the minimum price criteria. The company has already confirmed to the NYSE its intent to cure the deficiency, including by effecting a reverse stock split, subject to board approval and stockholder approval at its upcoming 2024 annual meeting.
Receipt of the NYSE notice does not affect Amwell’s business, operations or reporting requirements with the Securities and Exchange Commission. The company’s Class A common stock will continue to list and trade on the NYSE during the six-month cure period, subject to its compliance with other NYSE continued listing standards.
About Amwell
Amwell provides a leading hybrid care enablement platform in the United States and globally, connecting and enabling providers, payers, patients, and innovators to deliver greater access to more affordable, higher quality care. Amwell believes that hybrid care delivery will transform healthcare. The company offers a single comprehensive platform to support all digital health needs, from urgent to acute and post-acute care, chronic care management and healthy living. With nearly two decades of experience, Amwell powers the digital care of more than 50 health plans, which collectively represent more than 100 million covered lives and many of the nation’s largest health systems. For more information, please visit https://business.amwell.com/.
©2024 American Well Corporation. All rights reserved. Amwell®, SilverCloud®, ConvergeTM, CarepointTM and the Amwell Logo are registered trademarks or trademarks of American Well Corporation.
Forward-Looking Statements
This press release contains forward-looking statements about us and our industry that involve substantial risks and uncertainties and are based on our beliefs and assumptions and on information currently available to us. All statements other than statements of historical facts contained in this press release, including statements regarding the ability to cure the minimum price criteria deficiency and regain compliance with NYSE listing standards and for the Class A common stock to remain listed on the NYSE, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” or “would,” or the negative of these words or other similar terms or expressions.
Forward-looking statements represent our beliefs and assumptions only as of the date of this release. These statements, and related risks, uncertainties, factors and assumptions, include, but are not limited to: our ability to regain and maintain compliance with NYSE listing standards; our ability effect any reverse stock split; our ability to successfully transition our clients to Converge without significant attrition; our ability to renew and upsell our client base; the election by the Defense Health Agency to deploy our solution across their entire enterprise; the continuation of the DHA relationship beyond July of 2025 with comparable financial terms; weak growth and increased volatility in the telehealth market; our ability to adapt to rapid technological changes; increased competition from existing and potential new participants in the healthcare industry; changes in healthcare laws, regulations or trends and our ability to operate in the heavily regulated healthcare industry; our ability to comply with federal and state privacy regulations; the significant liability that could result from a cybersecurity breach; and other factors described under ‘Risk Factors’ in our most recent form 10-K filed with the SEC. These risks are not exhaustive. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. Further information on factors that could cause actual results to differ materially from the results anticipated by our forward-looking statements is included in the reports we have filed or will file with the Securities and Exchange Commission. These filings, when available, are available on the investor relations section of our website at investors.amwell.com and on the SEC’s website at www.sec.gov.
FAQ
Why did Amwell receive a notice from the NYSE?
What was the average closing price of Amwell's Class A common stock that led to the notice?
What action does Amwell plan to take to regain compliance with the NYSE's minimum price criteria?
Will Amwell's Class A common stock be delisted immediately from the NYSE?
How will the receipt of the NYSE notice impact Amwell's business operations?
Where will Amwell's Class A common stock continue to list and trade during the six-month cure period?
