Zevia Regains Compliance with NYSE Minimum Price Requirement

Rhea-AI Summary

Zevia PBC (NYSE: ZVIA) has announced that it has regained compliance with the New York Stock Exchange's minimum stock price requirement. The company received a notice from the NYSE on October 1, 2024, confirming its compliance with the continued listing standard outlined in Section 802.01C of the NYSE Listed Company Manual.

Previously, on June 26, 2024, Zevia had received a noncompliance notice due to its Class A common stock's average closing price falling below $1.00 per share over a consecutive 30 trading-day period. However, as of September 30, 2024, the company's stock closed above $1.00 and maintained an average closing share price of at least $1.00 over the preceding 30 trading days, thus meeting the NYSE's requirements.

Positive

• Regained compliance with NYSE minimum stock price requirement
• Class A common stock closed above $1.00 per share
• Maintained average closing share price of at least $1.00 over 30 trading days

Negative

• Previously received noncompliance notice due to stock price falling below $1.00

Insights

Financial Analyst

Zevia's regaining of NYSE compliance is a positive development, albeit with immediate financial impact. This news removes the risk of delisting, which could have severely impacted investor confidence and the company's ability to raise capital. However, it's important to note that compliance was achieved without a reverse stock split, suggesting organic share price improvement.

For a small-cap company like Zevia, with a market cap of just $61.4 million, maintaining NYSE listing is vital for visibility and liquidity. The stock's recovery above $1 may indicate improving market sentiment or business fundamentals, but investors should investigate the drivers behind this price increase.

While this news doesn't directly affect Zevia's financials, it removes a significant overhang and may help attract institutional investors who have minimum price requirements. However, the company's small size and previous price weakness suggest ongoing challenges that require careful monitoring.

LOS ANGELES--(BUSINESS WIRE)-- Zevia PBC (“Zevia” or the “Company”) (NYSE: ZVIA), today announced that it received a notice from the New York Stock Exchange (the “NYSE”) on October 1, 2024 that the Company has regained compliance with the minimum stock price continued listing standard set forth in Section 802.01C of the NYSE Listed Company Manual.

The Company previously received a noncompliance notice from the NYSE on June 26, 2024, because the average closing price of the Company’s Class A common stock had been less than $1.00 per share over a consecutive 30 trading-day period. On September 30, 2024, the Company’s Class A common stock closed above $1.00 and had an average closing share price of at least $1.00 over the prior 30 trading-day period.

About Zevia

Zevia PBC, a Delaware public benefit corporation designated as a “Certified B Corporation,” is focused on addressing the global health challenges resulting from excess sugar consumption by offering a broad portfolio of zero sugar, zero calorie, naturally sweetened beverages. All Zevia^® beverages are made with a handful of simple, plant-based ingredients, contain no artificial sweeteners, and are Non-GMO Project verified, gluten-free, Kosher, vegan and zero sodium. Zevia is distributed in more than 34,000 retail locations in the U.S. and Canada through a diverse network of major retailers in the food, drug, warehouse club, mass, natural and ecommerce channels.

(ZEVIA-F)

View source version on businesswire.com: https://www.businesswire.com/news/home/20241003265692/en/

Investors

Greg Davis

Zevia PBC

424-343-2654

Gregory@zevia.com

Reed Anderson

ICR

646-277-1260

Reed.Anderson@icrinc.com

Source: Zevia PBC

FAQ

When did Zevia (ZVIA) regain compliance with NYSE's minimum price requirement?

Zevia regained compliance with NYSE's minimum price requirement on October 1, 2024, as announced in their press release.

What was the reason for Zevia's (ZVIA) previous noncompliance with NYSE standards?

Zevia received a noncompliance notice on June 26, 2024, because its Class A common stock's average closing price was below $1.00 per share over a consecutive 30 trading-day period.

How did Zevia (ZVIA) meet the NYSE's minimum price requirement?

Zevia met the requirement by closing above $1.00 per share and maintaining an average closing share price of at least $1.00 over a 30 trading-day period, as of September 30, 2024.