VirnetX Receives NYSE Notification
VirnetX Holding (NYSE: VHC), an Internet security software and technology company, has received a notice from the New York Stock Exchange (NYSE) on August 28, 2024, stating that the company is not in compliance with Section 802.01B of the NYSE's Listed Company Manual. This non-compliance is due to the company's average global market capitalization over a consecutive 30 trading-day period being less than $50 million, while simultaneously having stockholders' equity below $50 million.
The notice does not immediately impact VirnetX's stock listing or business operations. The company has 45 days to submit a plan to the NYSE outlining actions to regain compliance. If accepted, VirnetX will have an 18-month cure period to meet the continued listing standards, subject to periodic review by the NYSE.
VirnetX Holding (NYSE: VHC), un'azienda di software e tecnologia per la sicurezza su Internet, ha ricevuto una comunicazione dalla New York Stock Exchange (NYSE) il 28 agosto 2024, che informa che l'azienda non è in conformità con la Sezione 802.01B del Manuale delle Aziende quotate della NYSE. Questa non conformità è dovuta al fatto che la capitalizzazione di mercato media globale dell'azienda su un periodo consecutivo di 30 giorni di scambi è inferiore a 50 milioni di dollari, mentre la valutazione degli azionisti è sotto ai 50 milioni di dollari.
La comunicazione non influisce immediatamente sulla quotazione delle azioni di VirnetX o sulle operazioni commerciali. L'azienda ha 45 giorni per presentare un piano alla NYSE che delinei le azioni per ripristinare la conformità. Se accettato, VirnetX avrà un periodo di recupero di 18 mesi per soddisfare gli standard di quotazione continua, soggetto a revisione periodica da parte della NYSE.
VirnetX Holding (NYSE: VHC), una empresa de software y tecnología de seguridad en Internet, ha recibido un aviso de la Bolsa de Nueva York (NYSE) el 28 de agosto de 2024, indicando que la empresa no cumple con la Sección 802.01B del Manual de Empresas Listadas de la NYSE. Esta falta de cumplimiento se debe a que la capitalización de mercado global promedio de la empresa durante un período consecutivo de 30 días de negociación es inferior a 50 millones de dólares, mientras que simultáneamente tiene capital de los accionistas por debajo de 50 millones de dólares.
El aviso no afecta inmediatamente la cotización de acciones de VirnetX ni sus operaciones comerciales. La empresa tiene 45 días para presentar un plan a la NYSE que describa las acciones para recuperar la conformidad. Si se acepta, VirnetX tendrá un período de corrección de 18 meses para cumplir con los estándares de cotización continua, sujeto a revisión periódica por parte de la NYSE.
VirnetX Holding (NYSE: VHC), 인터넷 보안 소프트웨어 및 기술 회사,는 2024년 8월 28일 뉴욕 증권 거래소(NYSE)로부터 통지를 받았으며, 회사가 NYSE의 상장 회사 매뉴얼의 섹션 802.01B를 준수하지 않고 있음을 알렸습니다. 이 비준수는 회사의 전 세계 평균 시가총액이 연속 30 거래일 기간 동안 5000만 달러 미만인 동시에 주주 자본이 5000만 달러 이하인 데에 기인합니다.
이 통지는 VirnetX의 주식 상장이나 사업 운영에 즉각적인 영향을 미치지 않습니다. 회사는 NYSE에 준수를 회복하기 위한 조치를 설명하는 계획을 제출하기 위해 45일의 시간을 갖습니다. 만약 계획이 승인된다면, VirnetX는 지속적인 상장 기준을 충족하기 위해 18개월의 치료 기간을 가질 수 있으며, 이는 NYSE에 의해 정기적으로 검토됩니다.
VirnetX Holding (NYSE: VHC), une entreprise de logiciels et de technologies de sécurité Internet, a reçu un avis de la Bourse de New York (NYSE) le 28 août 2024, l'informant que l'entreprise n'est pas en conformité avec la section 802.01B du Manuel des entreprises cotées de la NYSE. Cette non-conformité est due au fait que la capitalisation boursière mondiale moyenne de l'entreprise sur une période consécutive de 30 jours de négociation est inférieure à 50 millions de dollars, alors que son capitaux propres des actionnaires sont en dessous de 50 millions de dollars.
L'avis n'affecte pas immédiatement la cotation des actions de VirnetX ni ses opérations commerciales. L'entreprise dispose de 45 jours pour soumettre un plan à la NYSE décrivant les actions à entreprendre pour retrouver la conformité. Si accepté, VirnetX disposera d'une période de redressement de 18 mois pour respecter les normes de cotation continues, sous réserve d'un examen périodique par la NYSE.
VirnetX Holding (NYSE: VHC), ein Unternehmen für Internet-Sicherheitssoftware und -technologie, hat am 28. August 2024 eine Mitteilung von der New Yorker Börse (NYSE) erhalten, in der erklärt wird, dass das Unternehmen nicht mit Abschnitt 802.01B des börsennotierten Unternehmenshandbuchs der NYSE übereinstimmt. Diese Nichteinhaltung liegt daran, dass die durchschnittliche globale Marktkapitalisierung des Unternehmens über einen aufeinanderfolgenden Zeitraum von 30 Handelstagen unter 50 Millionen Dollar lag, während das Eigenkapital der Aktionäre unter 50 Millionen Dollar liegt.
Die Mitteilung hat keinen sofortigen Einfluss auf die Börsennotierung oder die Geschäftstätigkeit von VirnetX. Das Unternehmen hat 45 Tage, um der NYSE einen Plan vorzulegen, der Maßnahmen zur Wiederherstellung der Compliance umreißt. Bei akzeptablem Plan hat VirnetX eine 18-monatige Nachbesserungsfrist, um die fortlaufenden Notierungsstandards zu erfüllen, die regelmäßig von der NYSE überprüft wird.
- No immediate impact on stock listing or business operations
- 45-day window to submit compliance plan to NYSE
- Potential 18-month cure period if plan is accepted
- Non-compliance with NYSE listing requirements
- Average global market capitalization below $50 million
- Stockholders' equity less than $50 million
- Risk of delisting if compliance plan is not accepted or executed successfully
Insights
The NYSE notification to VirnetX highlights significant financial challenges for the company. With a market cap and stockholders' equity both below
The 18-month cure period provides a lifeline, but also puts pressure on VirnetX to dramatically improve its financial position. Failure to do so could result in delisting, which would likely cause further stock price decline and limit access to capital markets. Investors should closely monitor VirnetX's plan to address these issues and its execution in the coming months.
VirnetX's non-compliance with NYSE standards is a red flag for investors. It suggests the company's market value has significantly eroded, potentially due to operational challenges or market skepticism about its business model. The internet security software sector is highly competitive and VirnetX may be struggling to maintain relevance or profitability.
This situation could trigger a negative feedback loop: lower market cap leads to reduced investor interest, potentially making it harder for VirnetX to raise capital or attract strategic partnerships. The company needs to present a compelling turnaround strategy to regain market confidence and avoid further decline in its stock value.
The NYSE notification triggers important legal and regulatory considerations for VirnetX. The company must now navigate a complex process to maintain its listing, including submitting a credible compliance plan within 45 days. This situation increases regulatory scrutiny and could potentially lead to shareholder lawsuits if investors feel the company hasn't adequately disclosed its financial challenges.
Moreover, if VirnetX fails to regain compliance within the 18-month period, it faces potential delisting. This would have significant legal implications, including possible breach of contract issues with business partners or lenders who may have agreements contingent on NYSE listing. The company's board and management must carefully manage these risks while working to improve its financial position.
In accordance with NYSE procedures, within 45 days from receipt of the Notice, the Company intends to submit a plan to the NYSE advising it of the definitive action(s) the company has taken, is taking, or plans to take that would bring it into conformity with the continued listing standards. If the NYSE accepts the Company's plan, the Company's common stock will continue to be listed and traded on the NYSE during the 18-month cure period, subject to the company's compliance with other NYSE continued listing standards and continued periodic review by the NYSE of the Company's progress with respect to its plan.
About VirnetX
VirnetX Holding Corporation is an Internet security software and technology company with industry-leading, patented technology for Zero Trust Network Access ("ZTNA") based secure network communications. VirnetX's software and technology solutions, including its Secure Domain Name Registry and Technology, VirnetX One®, VirnetX War Room®, VirnetX Matrix®, and Gabriel Connection Technology®, are designed to be device and location independent, and enable a secure real-time communication environment for all types of enterprise applications, services, and critical infrastructures. For more information, please visit www.virnetx.com.
Special Note Regarding Forward-Looking Statements
This press release should be read in conjunction with our filings with the Securities and Exchange Commission. Statements herein may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act").
These forward-looking statements are based upon our current expectations, estimates, assumptions, and beliefs concerning future events and conditions and may discuss, among other things, our ability to develop a plan to regain compliance with the continued listing criteria of the NYSE; the NYSE's acceptance of such plan; the Company's ability to execute such plan and to continue to comply with applicable listing standards within the available cure period; risks arising from the potential suspension of trading of the Company's common stock on the NYSE, and other risks and uncertainties detailed from time to time in our reports filed with the SEC. Any statement that is not historical in nature is a forward- looking statement and may be identified by the use of words and phrases such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "predicts," "projects," "will be," "will continue," "will likely result in," and similar expressions. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements are necessarily subject to risks, uncertainties, and other factors, many of which are outside our control, and could cause actual results to differ materially from such statements and from our historical results and experience. These risks, uncertainties and other factors include, but are not limited to risks detailed in our filings with the Securities and Exchange Commission (the "SEC"). Readers are cautioned that it is not possible to predict or identify all the risks, uncertainties and other factors that may affect future results and that the risks described herein should not be considered a complete list. Any forward-looking statement speaks only as of the date on which such statement is made.
EXCEPT AS REQUIRED BY LAW, WE UNDERTAKE NO OBLIGATION TO UPDATE OR REVISE ANY FORWARD-LOOKING STATEMENT AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE.
Contact:
Investor Relations
VirnetX Holding Corporation
415.505.0456
ir@virnetx.com
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SOURCE VirnetX Holding Corporation
FAQ
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