Barnes & Noble Education Receives Continued Listing Standard Notice From NYSE
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Insights
Receiving a notice of non-compliance from the NYSE is a critical event for a publicly traded company. It indicates that the company's stock price has fallen below the exchange's minimum requirement, which could be a red flag to investors about the company's financial health or market valuation. The six-month cure period provides a window for the company to address the issue, which could involve strategic financial maneuvers such as a reverse stock split or operational improvements aimed at bolstering investor confidence.
In the short-term, the stock may experience increased volatility as investors react to the news and the company's plans to regain compliance. Long-term implications could include a reassessment of the company's market position, potential restructuring, or a strategic shift to enhance profitability and shareholder value. If the company fails to regain compliance, it risks being delisted, which could severely limit its ability to raise capital and decrease stock liquidity, negatively affecting existing shareholders.
The education solutions sector is competitive and rapidly evolving, with digital transformation and the pandemic reshaping the landscape. A company's failure to maintain the minimum stock price could reflect broader market trends or specific operational challenges. It is essential to analyze the company's market share, product offerings and competitive position to understand the underlying causes of the stock price decline.
Investors should consider the company's response to the notice and its strategy to regain compliance. This could involve initiatives to increase revenue, cut costs, or improve operational efficiency. The company's ability to adapt to market changes and innovate could be a determining factor in its recovery and ability to satisfy the NYSE's requirements.
From an economic perspective, the notice of non-compliance could be symptomatic of macroeconomic factors such as a recession, reduced spending on education, or shifts in educational policy that could affect Barnes & Noble Education's core business. The company's performance must be contextualized within the broader economic environment, including consumer spending patterns and investment in education.
Moreover, the company's plan to cure the stock price deficiency will need to account for these external economic pressures. Their strategy could include diversifying revenue streams or exploring new markets to mitigate sector-specific risks. The success of these initiatives will be crucial in determining the company's financial trajectory and its ability to maintain a listing on the NYSE.
The Notice has no immediate impact on the listing of the Company’s common stock on the NYSE. The Notice is not anticipated to impact the ongoing business operations of the Company or its reporting requirements with the
On March 1, 2024, BNED notified the NYSE of its intention to cure the stock price deficiency and return to compliance with the NYSE’s minimum share price standard within the required six-month period following receipt of the Notice. The Company can regain compliance at any time within the six-month cure period (the “Cure Period”) following receipt of the Notice if, on the last trading day of any calendar month during such the Cure Period, the Company has both: (i) a closing share price of at least
The Company intends to remain listed on the NYSE and is considering all available options to regain compliance with the NYSE’s continued listing standards. The Company will continue to be listed and traded on the NYSE during the Cure Period.
ABOUT BARNES & NOBLE EDUCATION, INC.
Barnes & Noble Education, Inc. (NYSE: BNED) is a leading solutions provider for the education industry, driving affordability, access and achievement at hundreds of academic institutions nationwide and ensuring millions of students are equipped for success in the classroom and beyond. Through its family of brands, BNED offers campus retail services and academic solutions, a digital direct-to-student learning ecosystem, unparalleled best-in-class assortment of school apparel through a strategic alliance with Fanatics and Lids, wholesale capabilities and more. BNED is a company serving all who work to elevate their lives through education, supporting students, faculty and institutions as they make tomorrow a better, more inclusive and smarter world. For more information, visit www.bned.com.
Forward-Looking Statements
This press release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and information relating to us and our business that are based on the beliefs of our management as well as assumptions made by and information currently available to our management. When used in this communication, the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “will,” “forecasts,” “projections,” and similar expressions, as they relate to us or our management, identify forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Such statements reflect our current views with respect to future events, the outcome of which is subject to certain risks, including, among others: the amount of our indebtedness and ability to comply with covenants applicable to current and /or any future debt financing; our ability to satisfy future capital and liquidity requirements; our ability to access the credit and capital markets at the times and in the amounts needed and on acceptable terms; our ability to maintain adequate liquidity levels to support ongoing inventory purchases and related vendor payments in a timely manner; our ability to attract and retain employees; the pace of equitable access adoption in the marketplace is slower than anticipated and our ability to successfully convert the majority of our institutions to our BNC First Day® equitable and inclusive access course material models or successfully compete with third parties that provide similar equitable and inclusive access solutions; the United States Department of Education has recently proposed regulatory changes that, if adopted as proposed, could impact equitable and inclusive access models across the higher education industry; the strategic objectives, successful integration, anticipated synergies, and/or other expected potential benefits of various strategic and restructuring initiatives, may not be fully realized or may take longer than expected; dependency on strategic partnerships, such as with VitalSource Technologies, Inc. and the Fanatics Retail Group Fulfillment, LLC, Inc. (“Fanatics”) and Fanatics Lids College, Inc. D/B/A "Lids" (“Lids”) (collectively referred to herein as the “F/L Relationship”), and the potential for adverse operational and financial changes to these partnerships, may adversely impact our business; non-renewal of managed bookstore, physical and/or online store contracts and higher-than-anticipated store closings; decisions by colleges and universities to outsource their physical and/or online bookstore operations or change the operation of their bookstores; general competitive conditions, including actions our competitors and content providers may take to grow their businesses; the risk of changes in price or in formats of course materials by publishers, which could negatively impact revenues and margin; changes to purchase or rental terms, payment terms, return policies, the discount or margin on products or other terms with our suppliers; product shortages, including decreases in the used textbook inventory supply associated with the implementation of publishers’ digital offerings and direct to student textbook consignment rental programs; work stoppages or increases in labor costs; possible increases in shipping rates or interruptions in shipping services; a decline in college enrollment or decreased funding available for students; decreased consumer demand for our products, low growth or declining sales; the general economic environment and consumer spending patterns; trends and challenges to our business and in the locations in which we have stores; risks associated with operation or performance of MBS Textbook Exchange, LLC’s point-of-sales systems that are sold to college bookstore customers; technological changes, including the adoption of artificial intelligence technologies for educational content; risks associated with counterfeit and piracy of digital and print materials; risks associated with data privacy, information security and intellectual property; disruptions to our information technology systems, infrastructure, data, supplier systems, and customer ordering and payment systems due to computer malware, viruses, hacking and phishing attacks, resulting in harm to our business and results of operations; disruption of or interference with third party web service providers and our own proprietary technology; risks associated with the impact that public health crises, epidemics, and pandemics, such as the COVID-19 pandemic, have on the overall demand for BNED products and services, our operations, the operations of our suppliers and other business partners, and the effectiveness of our response to these risks; lingering impacts that public health crises may have on the ability of our suppliers to manufacture or source products, particularly from outside of
View source version on businesswire.com: https://www.businesswire.com/news/home/20240301501688/en/
Investor Contact:
Hunter Blankenbaker
Vice President
Corporate Communications and Investor Relations
Barnes & Noble Education, Inc.
(908) 991-2776
hblankenbaker@bned.com
Source: Barnes & Noble Education
FAQ
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