News and Observer Quotes Amy Batten on Retention of NYSE Status

Smith Anderson attorney Amy Batten offered her insights on how New York Stock Exchange (NYSE) companies that have received a notice of noncompliance from the exchange can retain their listing by restoring compliance with listing standards in an article published by The News and Observer (N&O) of Raleigh.

The Jan. 4 article, “Durham tech company at risk of bankruptcy, delisting from New York Stock Exchange,” describes an already troubled company’s challenges over the past couple of years and what a NYSE company that has received a notice of noncompliance from the NYSE can do to remain listed. The N&O reports that the company was not meeting the exchange’s standard that member companies must maintain an average closing price of at least $1 over a 30 trading day period.

In order for the company to retain its listing on the NYSE, its average closing stock price must return to more than $1 per share for a 30 trading day period within the following six months. Amy explained two ways companies could do that: One is what Amy called the “natural course of events”: good earnings reports, promising macroeconomic trends and favorable technological advances which can influence a public company’s stock price. But if the market doesn’t elevate a stock price on its own, a second option is to conduct a reverse stock split, which consolidates existing shares into fewer shares and results in a higher price per share.

"That usually requires going to shareholders, which can be kind of tricky,” Amy said. “Sometimes they don’t want to approve that, sometimes they do.”

Amy has over 30 years of experience in counseling public and private companies on complex securities laws, is chair of Smith Anderson’s Management Committee and co-leads Smith Anderson’s Corporate team. She works closely with executives and boards of directors, assisting with day-to-day compliance and advising on strategic corporate and capital raising transactions. Amy has advised many of the region’s largest and growing public companies.

N&O subscribers can view the entire article here.

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About the News & Observer

The News & Observer is widely regarded as one of the nation's best regional newspapers, and places a strong emphasis on investigative reporting and watchdog journalism. A Pulitzer-prize winning news organization with deep roots in the Triangle, The News & Observer also produces The Durham Herald-Sun and The N.C. Insider.