Regis Announces Appeal of NYSE Determination to Commence Proceedings to Delist Regis’ Common Stock
- None.
- Regis Corporation's inability to demonstrate compliance with the NYSE's listing standard is a negative aspect for the company as it faces the risk of delisting, which could impact investor confidence and stock performance.
Insights
The request for an oral hearing by Regis Corporation regarding the NYSE's delisting proceedings is a critical juncture for the company. This move indicates that Regis is actively seeking to address the compliance issues that have led to the delisting threat. The outcome of the hearing will have significant implications for the company's financial health and investor confidence. A successful appeal may restore credibility and potentially stabilize the stock price, while failure could lead to decreased liquidity and investor exit, further impacting the company's market capitalization and ability to raise capital.
It is essential to monitor the company's stockholders' equity and market capitalization closely, as they are key indicators of its financial stability and growth prospects. The inability to maintain the minimum requirements set by the NYSE reflects underlying financial challenges that Regis must overcome to sustain its operations and growth. Investors should be aware of the risks associated with the potential delisting, including the possibility of reduced visibility and investor interest, which could affect the stock's volatility and trading volume.
The haircare industry has been facing a dynamic shift with the emergence of new trends and consumer preferences, which impacts companies like Regis Corporation. The delisting notice from the NYSE could be symptomatic of broader industry challenges, such as increased competition, changing consumer behaviors and the impact of digital transformation. These factors may affect Regis' market share and financial performance, which in turn influences its ability to meet the NYSE's listing standards.
For stakeholders, the strategic response of Regis to this situation, including exploring alternative listing options, is indicative of the company's resilience and adaptability. However, it also underscores the necessity for the company to reassess its business model and possibly innovate to enhance its financial metrics and market position. The appeal process and the company's plan of compliance will be pivotal in determining its future direction and operational strategy within the competitive landscape of the haircare industry.
The legal process of appealing a delisting decision involves presenting a plan of compliance that demonstrates the company's ability to meet the exchange's financial requirements. Regis Corporation's engagement in this process is an attempt to protect its listing status, which confers a level of prestige and trust among investors. The legal ramifications of delisting include not only the potential loss of an NYSE platform for trading but also potential contractual breaches with creditors and stakeholders who may have terms tied to the listing status.
Moreover, the NYSE's reserved right to suspend trading during the appeal process adds a layer of uncertainty that could affect the stock's stability. It is crucial for the company to communicate transparently with its stakeholders about the progress and outcomes of the appeal to maintain trust and manage market expectations. The legal strategies employed in the compliance plan will be a testament to the company's governance and its commitment to adhering to market regulations.
Regis looks forward to presenting its plan of compliance at the hearing, and in the interim, will continue to evaluate all available listing options.
During this time, Regis common stock has not been suspended from trading and is expected to continue to be listed and traded on the NYSE while any such appeal remains pending. However, the NYSE reserves the right, while the appeal remains pending, under subsequent committee review to determine that trading in Regis common stock should be suspended.
NYSE Regulation has determined that Regis was unable to demonstrate that it had regained compliance with the applicable listing standard by the expiration of the maximum plan period. As previously disclosed, Regis had been deemed below compliance with the NYSE’s continued listing standard in Section 802.01B of the Listed Company Manual requiring listed companies to maintain either (i) at least
About Regis Corporation
Regis Corporation (NYSE:RGS) is a leader in the haircare industry. As of September 30, 2023, the Company franchised or owned 4,811 locations. Regis’ franchised and corporate locations operate under concepts such as Supercuts®, SmartStyle®, Cost Cutters®, Roosters® and First Choice Haircutters®. For additional information about the Company, including a reconciliation of certain non-GAAP financial information and certain supplemental financial information, please visit the Investor Relations section of the corporate website at www.regiscorp.com.
This release contains or may contain “forward-looking statements” within the meaning of the federal securities laws, including statements concerning anticipated future events and expectations that are not historical facts. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements in this document reflect management’s best judgment at the time they are made, but all such statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those expressed in or implied by the statements herein. Such forward-looking statements are often identified herein by use of words including, but not limited to, “may,” “believe,” “project,” “forecast,” “expect,” “estimate,” “anticipate,” “intend,” “looks forward to” and “plan.” In addition, the following factors could affect the Company’s actual results and cause such results to differ materially from those expressed in forward-looking statements. These factors include our ability to comply with applicable national stock exchange listing requirements, potential timing and outcomes of suspension and delisting procedures and future trading or quotation of our common stock, and other potential factors that could affect future financial and operating results as set forth under Item 1A of our Form 10-K. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. However, your attention is directed to any further disclosures made in our subsequent annual and periodic reports filed or furnished with the Securities and Exchange Commission on Forms 10-K, 10-Q and 8-K and Proxy Statements on Schedule 14A.
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REGIS CORPORATION:
Kersten Zupfer
investorrelations@regiscorp.com
Source: Regis Corporation
FAQ
Why has Regis Corporation requested an oral hearing of the NYSE’s decision to delist its common stock?
What are the consequences of the NYSE's decision to commence proceedings to delist Regis' common stock?
What were the reasons for Regis Corporation's non-compliance with the NYSE's listing standard?
What is the current status of Regis Corporation's common stock on the NYSE?
How does NYSE Regulation's determination impact Regis Corporation?
