Finance & Investing | General News | Capital Markets

Resolute Stock Falls Out of Compliance with NYSE

Share Print Bookmark    |    Wednesday,July 29,2015

Resolute Energy Corp. announced that it had received notification on July 23, 2015, from the New York Stock Exchange that the price of Resolute's common stock has fallen below the NYSE's continued listing standard. The NYSE requires that the average closing price of a listed company's common stock be above $1.00 per share over a consecutive 30 trading-day period. As of July 20, 2015, the 30 trading-day average closing price of the Company's common stock was $0.99 per share.

Under NYSE rules, the Company can avoid delisting if, during the six month period following receipt of the NYSE notice, Resolute's common stock price per share and 30 trading-day average share price rises above $1.00. During this period, the Company's common stock will continue to be traded on the NYSE, subject to compliance with other continued listing requirements. As required by the NYSE, in order to maintain its listing, the Company has notified the NYSE that it intends to cure the price deficiency before January 23, 2016. The NYSE notification does not affect the Company's business operations or its SEC reporting requirements and does not conflict with or cause an event of default under any of the Company's material debt or other agreements. 

At the Company's annual meeting of stockholders held on June 8, 2015, the Company's stockholders approved a resolution authorizing the Board of Directors to implement a reverse stock split of its common stock at any time prior to December 31, 2015, at one of seven reverse split ratios: 1-for-2, 1-for-5, 1-for-10, 1-for-15, 1-for-20, 1-for-25 or 1-for-30, as determined by Resolute's Board in its sole discretion. If it becomes necessary to do so in order to maintain compliance with the NYSE listing standards, the Company's Board will implement a reverse stock split prior to the end of the NYSE cure period, and may do so in advance of such date.

Nicholas J. Sutton, Resolute's Chairman and Chief Executive Officer said: "Equity share prices for companies across the industry have fallen sharply over the past year, reflecting the precipitous decline in crude oil prices during the same time period. Our common shares have traded below $1.00 per share for long enough such that the NYSE was required to issue a non-compliance notice. The notice begins a six-month process during which Resolute can regain compliance by trading above an average price of $1.00 for 30 trading days. This can be accomplished by market improvement or through a reverse split of our equity, which was already approved by our stockholders at our 2015 annual meeting and can be implemented by our Board of Directors at any time. We will monitor the situation carefully, and we expect to remain listed on the NYSE or another highly visible, well regarded exchange."