Finance & Investing | General News | Capital Markets

Penn West Stock Falls Below Dollar Mark

Share Print Bookmark    |    Tuesday,January 05,2016

Penn West Petroleum Ltd. received notification on January 4, 2016 from the New York Stock Exchange that Penn West is no longer in compliance with one of the NYSE's continued listing standards applicable to Penn West because the average closing price of Penn West's common stock was less than US$1.00 per share over a consecutive 30 trading day period.  As of December 30, 2015, the average closing price of Penn West's common stock over the preceding consecutive 30 trading day period was US$0.97 per share.  The issuance by the NYSE of the notification is not discretionary and is sent automatically when a listed company's stock price falls below the NYSE's minimum price listing standard.

Non-compliance with the NYSE's price listing standard does not affect Penn West's business operations or its reporting requirements to the U.S. Securities and Exchange Commission, nor does it breach or cause an event of default under any of Penn West's agreements with its lenders.  Penn West continues to be in compliance with the terms of all of those agreements.  In addition, non-compliance with the NYSE price listing standard does not affect the continued listing and trading of Penn West's common shares on the Toronto Stock Exchange.

Under the NYSE's rules, Penn West has a period of six months from the date of the NYSE notification to regain compliance with the NYSE's price listing standard and avoid delisting.  If Penn West determines to remedy the non-compliance by taking action that requires shareholder approval, then Penn west may seek to obtain such shareholder approval at its next annual meeting in 2016.  Penn West can regain compliance if, during the applicable cure period following receipt of the NYSE notification, on the last trading day of any calendar month, Penn West's common stock has a closing price and a 30 trading day average closing price of at least US$1.00 per share.  In the event that at the expiration of the applicable cure period, Penn West has not regained compliance, the NYSE will commence suspension and delisting procedures.  Management of Penn West will actively monitor the stock price and evaluate all available options in order to regain compliance with the NYSE's price listing standard within the applicable cure period.

Penn West intends to notify the NYSE within 10 business days from the date of the NYSE notification that it intends to cure this price deficiency and return to compliance with the NYSE's price listing standard prior to the expiration of the applicable cure period.

Penn West's common stock will continue to be listed and traded on the NYSE during the applicable cure period, subject to compliance with the NYSE's other continued listing standards, under the symbol "PWE", but the NYSE will assign a ".BC" indicator to the symbol to denote that Penn West is below the NYSE's price listing standard.  This indicator will be removed at such time as Penn West is deemed compliant with the NYSE's price listing standard.