AerospaceHuman ResourcesArchitectureInnovationBanking & FinanceNonprofitsConstructionReal EstateEconomy RetailEducationSales & MarketingEnergyTechnologyGovernmentTransportationHealth Care
Oklahoma City-based energy company GMX Resources Inc. was notified June 20 by the New York Stock Exchange that the decline in the company’s share price to under $1 is out of compliance with listing standards. The company was founded in 1998 and publicly traded since 2001.
On June 21, GMX shares closed down five cents to end the day at 85 cents per share.
NYSE's rules require that
in order to get back in compliance with the listing standard, both the company's
ending share price and the average share price over a consecutive 30
period must exceed $1 within six months following receipt of the noncompliance notice.
If the company can determine a remedy to the noncompliance and take action, which requires shareholder approval, it could do a reverse stock split as one option, and the NYSE will continue to list the common stock pending shareholder approval no later than its next annual meeting.
The listing standard will be restored if the share price promptly exceeds $1 per share and remains about that level for the following 30 trading days. The common stock will continue to be listed and trade on the NYSE subject to compliance with the NYSE's other applicable listing requirements.
"We do not believe that the current stock price properly reflects the potential value of our oil and gas assets, and we are confident in our ability to implement steps to increase our share price to comply with the NYSE continued listing standards," said CEO Ken L. Kenworthy Jr.