Compass Minerals Receives Notice of Filing Delinquency from the New York Stock Exchange

Rhea-AI Summary

Compass Minerals (NYSE: CMP) has received a notice of filing delinquency from the New York Stock Exchange (NYSE) on August 15, 2024. The company has not yet filed its Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, resulting in non-compliance with NYSE listing requirements. This delinquency has no immediate effect on the listing of Compass Minerals' securities. The company plans to follow NYSE procedures to regain compliance and is working to file the report as soon as possible.

The delay is due to pending restatements of financial statements for multiple periods, including the quarterly report for June 30, 2023, annual report for September 30, 2023, and quarterly reports for December 31, 2023, and March 31, 2024. Compass Minerals cited the need for unreasonable effort or expense to file the report within the prescribed time period.

Positive

• No immediate effect on NYSE listing of Compass Minerals' securities
• Company is actively working to file the required report and regain compliance

Negative

• Failure to file Quarterly Report on Form 10-Q for Q2 2024 on time
• Non-compliance with NYSE listing requirements
• Pending restatements of financial statements for multiple previous periods
• Potential risk to continued NYSE listing if compliance is not regained

Insights

Financial Analyst

This notice from the NYSE is a significant red flag for Compass Minerals. The company's failure to file its quarterly report on time, coupled with pending restatements of multiple previous financial statements, indicates serious accounting issues. This situation raises concerns about the reliability of the company's financial reporting and could potentially lead to investor distrust.

The impact on the stock could be substantial. Historically, companies facing similar situations often experience stock price volatility and decreased investor confidence. While there's no immediate threat of delisting, prolonged non-compliance could lead to more severe consequences. Investors should be cautious and closely monitor the company's progress in filing the required reports and addressing the underlying accounting issues.

Legal Expert

The notice from the NYSE puts Compass Minerals in a precarious legal position. The company now faces increased scrutiny from both the NYSE and the SEC. The need for multiple restatements suggests potential violations of securities laws, which could lead to regulatory investigations and possible legal actions from shareholders.

While the company has an opportunity to regain compliance, the process can be lengthy and costly. The outcome will largely depend on the nature and extent of the accounting issues discovered during the restatement process. Investors should be aware that such situations often result in class-action lawsuits, which can further strain the company's resources and reputation.

Market Research Analyst

This development could significantly erode market confidence in Compass Minerals. The need for multiple restatements spanning several reporting periods suggests systemic issues in the company's financial reporting processes. This uncertainty may lead to increased short-selling pressure and potential downgrades from analysts.

Moreover, the company's credibility with business partners and creditors may be affected, potentially impacting operational and financing activities. As the essential minerals sector often requires substantial capital investments, any difficulty in accessing capital markets could hinder the company's growth prospects. Investors should closely monitor how this situation affects Compass Minerals' market share and competitive position within the industry.

OVERLAND PARK, Kan.--(BUSINESS WIRE)-- Compass Minerals (NYSE: CMP), a leading global provider of essential minerals, received written notice on August 15, 2024 from the New York Stock Exchange (NYSE) that, because the company has not yet filed its Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 (the Report) with the Securities and Exchange Commission (SEC), the company is not in compliance with the continued listing requirements under Section 802.01E of the NYSE Listed Company Manual (Section 802.01E), which requires NYSE-listed companies to timely file all periodic reports with the SEC.

The company’s noncompliance with Section 802.01E has no immediate effect on the listing of the company’s securities on the NYSE. Compass Minerals plans to avail itself of the process provided by the NYSE to regain compliance. The company is working diligently to file the Report as soon as possible.

As previously reported by Compass Minerals in its Notification of Late Filing on Form 12b-25, filed with the SEC on Aug. 9, 2024, the company was unable to file the Report within the prescribed time period without unreasonable effort or expense as a result of pending restatements of its (i) unaudited financial statements included in its Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2023, (ii) audited financial statements included in its Annual Report on Form 10-K for the period ended Sept. 30, 2023, (iii) unaudited financial statements included in its Quarterly Report on Form 10-Q for the quarterly period ended Dec. 31, 2023 and (iv) unaudited financial statements included in its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2024.

About Compass Minerals

Compass Minerals (NYSE: CMP) is a leading global provider of essential minerals focused on safely delivering where and when it matters to help solve nature’s challenges for customers and communities. The company’s salt products help keep roadways safe during winter weather and are used in numerous other consumer, industrial, chemical and agricultural applications. Its plant nutrition products help improve the quality and yield of crops, while supporting sustainable agriculture. Additionally, it is working to develop a long-term fire-retardant business. Compass Minerals operates 12 production and packaging facilities with nearly 2,000 employees throughout the U.S., Canada and the U.K. Visit compassminerals.com for more information about the company and its products.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240816857932/en/

Media Contact

Rick Axthelm

Chief Public Affairs and Sustainability Officer

+1.913.344.9198

MediaRelations@compassminerals.com

Investor Contact

Brent Collins

Vice President, Investor Relations

+1.913.344.9111

InvestorRelations@compassminerals.com

Source: Compass Minerals

FAQ

Why did Compass Minerals (CMP) receive a notice from the NYSE on August 15, 2024?

Compass Minerals received a notice from the NYSE because it failed to file its Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, on time, resulting in non-compliance with NYSE listing requirements.

What is the immediate impact of the NYSE notice on Compass Minerals (CMP) stock listing?

The notice of non-compliance has no immediate effect on the listing of Compass Minerals' securities on the NYSE. The company has the opportunity to regain compliance through NYSE-provided procedures.

What financial periods are affected by Compass Minerals' (CMP) pending restatements?

Compass Minerals is working on restatements for the quarter ended June 30, 2023, the fiscal year ended September 30, 2023, and the quarters ended December 31, 2023, and March 31, 2024.

When does Compass Minerals (CMP) plan to file the delayed Quarterly Report?

Compass Minerals stated it is working diligently to file the Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, as soon as possible, but did not provide a specific date.