Desktop Metal has received notice from the New York Stock Exchange (NYSE) indicating that the company is not in compliance with NYSE’s continued listing standards.
It comes as Desktop Metal’s average closing price of common stock was less than 1.00 USD over a consecutive 30 trading-day period, with its stock currently trading at 0.65 USD (November 29, 2023).
The notice does not result in the immediate delisting of Desktop Metal’s common stock from the NYSE, but does mean the company has a period of six months from November 22nd, 2023 to regain compliance.
Desktop Metal has notified the NYSE of its intent to cure the stock price deficiency and return to compliance with the NYSE continued listing standards, but also intends to consider ‘available alternatives’ that include but are not limited to a reverse stock split, subject to stockholder approval no later than at the next annual meeting of stockholders.
Under NYSE rules, if Desktop Metal determines that it will cure the stock price deficiency by taking an action that will require stockholder approval at its next annual meeting of stockholders, the price condition will be deemed cured if the price promptly exceeds $1.00 per share, and the price remains above that level for at least the following 30 trading days.
In the meantime, Desktop Metal’s common stock will continue to be listed and trade on the NYSE, subject to its compliance with other NYSE continued listing standards.
Desktop Metal is the second 3D printing company to receive this noncompliance notice from the NYSE, after Markforged fell foul of the rule twice – most recently on November 21, 2023.
Read more:
