VirnetX Receives NYSE Failure to Satisfy a Continued Listing Rule Notification

Rhea-AI Summary

VirnetX Holding Corporation received a notice from the NYSE that its common stock is not in compliance with Rule 802.01C regarding the minimum average closing price. The company has six months to regain compliance by maintaining a closing price per share of at least $1.00 and a 30 trading-day average closing share price of at least $1.00. The company intends to cure the price deficiency and return to compliance, which may involve a reverse stock split.

Positive

• VirnetX intends to cure the price deficiency and return to compliance with Rule 802.01C.
• The company is undertaking business initiatives and other actions to increase stockholder value and drive share price increases.

Negative

• VirnetX's common stock is not in compliance with Rule 802.01C.
• The company may need to implement a reverse stock split to regain compliance.

ZEPHYR COVE, Nev., May 15, 2023 /PRNewswire/ -- VirnetX™ Holding Corporation (NYSE: VHC), an Internet security software and technology company, today announced that on May 12, 2023, it received a notice from the New York Stock Exchange (the "NYSE") that the Company's common stock is not in compliance with Rule 802.01C of the NYSE's Listed Company Manual ("Rule 802.01C") relating to the minimum average closing price of the Company's common stock required over a consecutive 30 trading-day period.  The NYSE notification does not affect the Company's business operations or its Securities and Exchange Commission reporting requirements.

Under the NYSE standards, the Company can regain compliance with Rule 802.01C if, during the six-month period following receipt of the NYSE notice, on the last trading-day of any calendar month, the Company's common stock has (i) a closing price per share of at least $1.00 and (ii) a 30 trading-day average closing share price of at least $1.00.

The Company intends to cure the price deficiency and return to compliance with Rule 802.01C within the applicable cure period.  As required by the NYSE, the Company will notify the NYSE of its intent to cure, which may include, if necessary, effecting a reverse stock split, subject to approval by the board of directors and stockholders of the Company.  The Company is already undertaking business initiatives and other actions that it believes will increase stockholder value and drive share price increases.  During this period, the Company's common stock will continue to be traded on the NYSE, subject to compliance with other continued NYSE listing requirements.

About VirnetX

VirnetX Holding Corporation is an Internet security software and technology company with patented technology for secure communications including 4G LTE and 5G security. 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 facilitate secure communications and to create a secure environment for real-time communication applications such as cloud computing, instant messaging, VoIP, smart phones, e-Readers and video conferencing. VirnetX's patent portfolio includes over 200 U.S. and foreign granted patents, validations and pending applications. For more information, please visit: http://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, expectations regarding our stock price, future compliance with NYSE listing rules, our intent to seek a curative action requiring shareholder approval, if necessary, our intent to remain listed on the NYSE and our intent to regain compliance with NYSE listing standards. 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

What is the notice received by VirnetX from the NYSE?

VirnetX received a notice from the NYSE stating that its common stock is not in compliance with Rule 802.01C regarding the minimum average closing price.

What does VirnetX need to do to regain compliance with Rule 802.01C?

VirnetX needs to maintain a closing price per share of at least $1.00 and a 30 trading-day average closing share price of at least $1.00 to regain compliance.

What actions is VirnetX taking to increase stockholder value?

VirnetX is undertaking business initiatives and other actions to increase stockholder value and drive share price increases.

What may VirnetX consider to regain compliance with Rule 802.01C?

VirnetX may consider implementing a reverse stock split to regain compliance.