Accendra Health Hit With Second NYSE Deficiency Notice, This Time on Market Cap and Equity
ACH sits 47% above its 52-week low of $0.191.
Summary
Accendra received an NYSE notice on October 27 saying it fails Section 802.01B: average market cap under $50 million over 30 trading days and stockholders' equity under $50 million. This is a second, separate listing problem — the October 6 notice was about the average closing price falling below $1.00, and the company is already asking shareholders to approve a 1-for-20 to 1-for-30 reverse split at a December meeting to fix that one. The stock keeps trading for now, but Accendra must notify NYSE within 10 business days of its intent to submit a business plan, which is due within 45 calendar days of the October 27 notice and must show how it regains compliance within 18 months, and NYSE would monitor progress quarterly if it accepts the plan. The backdrop is ugly: a $1.16 per-share Q2 loss, full-year EBITDA guidance cut, cash down to $7.7 million, and a CEO transition underway with Kenneth Gardner-Smith taking over from Ed Pesicka. A reverse split fixes the price test but does nothing for the market-cap and equity shortfall, so the business plan is the real hurdle. Watch the December shareholder vote on the reverse split and whether NYSE accepts the plan.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — Accendra must notify NYSE within 10 business days of its intent to submit a business plan, which is due within 45 calendar days of the October 27 notice.
At the time of this announcement, ACH was trading at $0.28 on NYSE in the Life Sciences sector, with a market capitalization of approximately $19.5M. The 52-week trading range was $0.19 to $5.24. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: BusinessWire.