Finance of America Receives Continued Listing Standard Notice from the NYSE

Rhea-AI Summary

Finance of America Companies Inc. (FOA) received a notice from the NYSE stating non-compliance with the average closing price requirement. The company has a six-month cure period to meet the $1.00 per share threshold. FOA plans to notify the NYSE of its intention to regain compliance and explore available options.

Insights

Financial Analyst

When a company's stock price falls below the NYSE's minimum average closing price requirement, it signifies potential financial instability or a lack of investor confidence. This situation often leads to increased market scrutiny and can impact investor perception. Stakeholders should monitor the company's financial performance and management's strategic initiatives to address this issue. The company must take corrective actions, such as financial restructuring, cost optimization, or strategic partnerships, to improve its stock performance and regain compliance.

However, these actions could come with risks such as dilution of existing shares if the company opts for a reverse stock split or additional equity financing. Stakeholders should evaluate the company's long-term value proposition and the effectiveness of its turnaround strategies. It is also crucial to assess the broader market conditions and sector performance, as these can influence the stock's recovery prospects.

Market Research Analyst

The NYSE's compliance notice serves as a market signal that can influence investor sentiment and the company's reputation. Competitors might leverage this opportunity to position themselves more favorably in the market. It is essential to analyze industry trends and the competitive landscape to understand how this development could affect the company's market share and growth prospects.

Consumer confidence and partner relations may also be impacted, potentially affecting the company's operations and revenue streams. The company's ability to regain compliance within the six-month cure period is critical to maintaining its listing status and avoiding further negative market perception. The effectiveness of the company's communication strategy in addressing these concerns and articulating a clear path to compliance will be key to stabilizing its stock price.

Legal Expert

The legal implications of a NYSE compliance notice require careful navigation. The company must adhere to strict regulatory timelines and procedures to regain compliance, failing which could lead to delisting. Delisting can have severe consequences, including reduced liquidity and access to capital markets, which could hamper the company's growth and operational capabilities.

Furthermore, the company's governance practices may come under scrutiny as it seeks shareholder approval for any measures that may be necessary to address the price condition. This process must be transparent and comply with SEC regulations to maintain shareholder trust and avoid legal complications. The company's legal team must ensure adherence to all regulatory requirements during this period to minimize the risk of further regulatory sanctions or shareholder litigation.

PLANO, Texas--(BUSINESS WIRE)-- The New York Stock Exchange (the “NYSE”) requires that companies with shares listed on the NYSE comply with the NYSE’s continued listed standards. The NYSE’s continued listing standards include the requirement set forth in Section 802.01C of the NYSE Listed Company Manual that the average closing price of a security is not less than $1.00 over a consecutive 30 trading-day period. If the average closing price of a security is less than $1.00 over a consecutive 30 trading-day period, then Section 802.01C of the NYSE Listed Company Manual provides for a six month cure period to regain compliance. Compliance can be achieved if on the last trading day of any calendar month during the cure period (or the last trading day of the cure period), the security has a closing share price of at least $1.00 and an average closing share price of at least $1.00 over the prior 30 trading-day period. Further, if a company determines that, if necessary, it will cure the price condition by taking an action that will require approval of its shareholders, it must so inform the NYSE, obtain the shareholder approval by no later than its next annual meeting and implement the action promptly thereafter. In such circumstances, the price condition will be deemed cured if the price of the security promptly exceeds $1.00 per share and the price remains above the level for at least the following 30 trading days.

On February 12, 2024, Finance of America Companies Inc. (“Finance of America” or the “Company”) (NYSE: FOA) received a notice (the “Notice”) from the NYSE, indicating the Company is not in compliance with Section 802.01C of the NYSE Listed Company Manual because as of February 9, 2024, the average closing price of the Company’s Class A Common Stock was less than $1.00 over a consecutive 30 trading-day period. The Notice has no immediate effect on the listing of the Class A Common Stock on the NYSE, subject to the Company’s compliance with the NYSE’s other continued listing requirements. Furthermore, the Notice is not anticipated to impact the ongoing business operations of the Company or its reporting requirements with the U.S. Securities and Exchange Commission (the “SEC”).

Finance of America plans to notify the NYSE within ten business days of its receipt of the Notice that it intends to bring the Company into compliance with this listing standard within the six month cure period. Finance of America intends to remain listed on the NYSE and is considering all available options to regain compliance with the NYSE’s continued listing standards.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including with respect to the Company’s ability to regain compliance with the NYSE’s continued listing standards. Forward-looking statements are not historical facts or statements of current conditions, but instead represent only management’s beliefs regarding future events, many of which, by their nature, are inherently uncertain and outside of the Company’s control. These statements are subject to risks, uncertainties, assumptions, and other important factors. Factors that could cause the Company’s actual results to differ materially from those expressed or implied in such forward-looking statements can be found in the section entitled “Risk Factors” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 16, 2023, as such factors may be amended and updated from time to time in the Company’s subsequent periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. Readers are cautioned not to put undue reliance on such forward-looking statements because actual results may vary materially from those expressed or implied. Finance of America assumes no obligation to, and expressly disclaims any obligation to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240216095649/en/

For Finance of America Media: pr@financeofamerica.com

For Finance of America Investor Relations: ir@financeofamerica.com

Source: Finance of America Companies Inc.

FAQ

What notice did Finance of America (FOA) receive from the NYSE?

Finance of America received a notice from the NYSE stating non-compliance with Section 802.01C of the NYSE Listed Company Manual due to the average closing price of its Class A Common Stock being less than $1.00 over a consecutive 30 trading-day period.

What is the consequence of not meeting the average closing price requirement on the NYSE?

Non-compliance with the average closing price requirement may lead to a delisting of the stock from the NYSE, subject to the company's ability to regain compliance within the specified cure period.

How long is the cure period given by the NYSE for non-compliance with the average closing price requirement?

The NYSE provides a six-month cure period for companies to meet the $1.00 per share threshold if their average closing price falls below that level over a consecutive 30 trading-day period.

What action must Finance of America take if shareholder approval is required to cure the price condition?

If shareholder approval is needed to cure the price condition, Finance of America must inform the NYSE, obtain shareholder approval by the next annual meeting, and promptly implement the action to regain compliance.

Is Finance of America (FOA) at risk of delisting from the NYSE?

While non-compliance with the average closing price requirement poses a risk of delisting, Finance of America plans to notify the NYSE of its intention to bring the company into compliance within the cure period.