LANNETT ANNOUNCES RECEIPT OF NOTICE OF NON-COMPLIANCE FROM NYSE RELATED TO STOCK PRICE

Rhea-AI Summary

Lannett Company (NYSE: LCI) announced receipt of a non-compliance notice from the NYSE on March 14, 2022, due to its stock price averaging below $1.00 over a 30-day period. The company has six months to regain compliance and is exploring options, potentially requiring stockholder approval for actions taken. Previously, Lannett was also informed on March 2 that it did not meet market capitalization requirements. Despite these notices, Lannett's stock will continue trading on the NYSE, albeit with a 'BC' designation indicating non-compliance.

Positive

• Lannett has a six-month period to regain compliance with the NYSE standards.
• The company will continue trading on the NYSE under the symbol 'LCI' during the cure period.

Negative

• Lannett's stock price averaged below the $1.00 minimum requirement.
• The company also failed to meet the market capitalization and stockholders' equity requirements of $50 million.

TREVOSE, Pa., March 18, 2022 /PRNewswire/ -- Lannett Company, Inc. (NYSE: LCI) today announced that it has received written notice from the New York Stock Exchange (NYSE) dated March 14, 2022, notifying the company that it is not in compliance with the continued listing standards set forth in Section 802.01C of the NYSE Listed Company Manual because the average closing price of the company's common stock was less than $1.00 per share over a consecutive 30 trading-day period.

The company has six months from the date of the Notice to regain compliance with the NYSE continued listing standard. Lannett is evaluating all available options to regain compliance with the NYSE's continued listing standards, which may include transactions that are subject to approval of Lannett's stockholders, in which case, Lannett would have until its next annual meeting of stockholders to obtain stockholder approval for such action, notwithstanding the six-month cure period referenced above. Lannett would be required to implement the action promptly after receiving stockholder approval, and the minimum share price requirement will be deemed cured if the price promptly exceeds $1.00 per share, and the price remains above that level for at least the 30 trading days following the implementation of such action.

As previously disclosed in the company's Current Report on Form 8-K filed with the Securities and Exchange Commission (SEC) on March 4, 2022 (March 4, 2022 Form 8-K), the company received notice on March 2, 2022 that it was not in compliance with the continued listing standard set forth in Section 802.01B of the NYSE's Listed Company Manual because the Company's average market capitalization was less than $50 million over a consecutive 30 trading-day period and the most recently reported stockholders' equity of the Company was also less than $50 million.

The Notice has no immediate impact on the listing of the Company's common stock, which will continue to be listed and traded on the NYSE during the cure period under the trading symbol "LCI," subject to the company's execution of the plan of compliance referenced in the March 4, 2022 Form 8-K and all other listing requirements of the NYSE. However, the common stock trading symbol will have an added designation of "BC" to indicate that the status of the common stock is "below compliance" with the NYSE continued listing standards. The "BC" indicator will be removed at such time as the Company regains compliance.

About Lannett Company, Inc.:

Lannett Company, founded in 1942, develops, manufactures, packages, markets and distributes generic pharmaceutical products for a wide range of medical indications. For more information, visit the company's website at www.lannett.com.

This news release contains certain statements of a forward-looking nature relating to future events or future business performance. Any such statement, including, but not limited to, the company's ability to meet the standards necessary to maintain listing of its shares of common stock on the NYSE, including its ability to cure non-compliance with the NYSE's continued listing criteria; the NYSE's acceptance of the company's business plan, whether expressed or implied, is subject to market and other conditions, and subject to risks and uncertainties which can cause actual results to differ materially from those currently anticipated due to a number of factors which include, but are not limited to, the risk factors discussed in the Company's Form 10-K and other documents filed with the SEC from time to time, including the prospectus supplement related to the proposed offering to be filed with the SEC. These forward-looking statements represent the Company's judgment as of the date of this news release. The Company disclaims any intent or obligation to update these forward-looking statements.

Contact: Robert Jaffe
Robert Jaffe Co., LLC
(424) 288-4098

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SOURCE Lannett Company, Inc.

FAQ

What notice did Lannett Company receive from the NYSE?

Lannett received a notice on March 14, 2022, for not complying with the NYSE's continued listing standards due to its stock price being below $1.00.

What is Lannett's stock symbol?

Lannett's stock is traded under the symbol 'LCI' on the NYSE.

How long does Lannett have to comply with the NYSE standards?

Lannett has six months from the date of the notice to regain compliance with the NYSE standards.

What are the implications of the NYSE notice for Lannett's stock?

The notice indicates that Lannett's stock is non-compliant, and it will be labeled with a 'BC' designation, though it can continue to trade during the cure period.

Did Lannett face any other compliance issues with the NYSE?

Yes, on March 2, 2022, Lannett was also notified of non-compliance regarding its market capitalization and stockholders' equity being below $50 million.