NYSE Flags Stem for Listing Noncompliance as Market Cap Sinks Below $50M
STEM is trading near its 52-week low of $2.96 (1.7% above the low).
Summary
Stem received an NYSE letter on October 20 confirming it fails Section 802.01B, which requires both a 30-trading-day average global market cap and stockholders' equity of at least $50 million. The company notified the exchange of the deficiency on October 19 and has 10 business days to declare its intent to submit a cure plan, which must be filed within 45 days and demonstrate compliance within 18 months. Shares continue trading during the cure period, but this is a hard marker of how far the equity has fallen — the stock sits near its 52-week low of $2.96 against a $25.18 high. It follows a weak Q2 in August, when revenue fell 12% year-over-year to $33.7 million and the company posted a $1.58 per-share loss, with the 10-Q also disclosing ATM share sales and a PIK interest election on its senior secured notes. A sub-$50 million market cap plus an active $30 million at-the-market program leaves little room to cure the equity test without further dilution or a sharp re-rating.
At the time of this announcement, STEM was trading at $3.01 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $29M. The 52-week trading range was $2.96 to $25.18. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: BusinessWire.