What is the reason for the NYSE notification to EXPAND ENERGY Corp?

EXPAND ENERGY Corp (EXE) received a notification from the NYSE because the average closing price of its common stock over a prior 30 consecutive trading day period was below $1.00 per share, which is the minimum required to maintain listing under NYSE rules.

What happens to EXPAND ENERGY Corp's stock trading immediately after this notification?

There is no immediate impact on the listing. The common stock will continue to trade on the NYSE under its symbol "CHK". However, it will be appended with a ".BC" designation to indicate its "below compliance" status.

How much time does EXPAND ENERGY Corp have to fix this issue, and what are the requirements?

The company has a period of six months following the receipt of the notice to regain compliance. To do so, the common stock must have a closing price of at least $1.00 and an average closing price of at least $1.00 over the preceding 30 trading days on the last trading day of each calendar month within this six-month cure period.

What are the potential consequences if EXPAND ENERGY Corp fails to regain compliance?

If the company fails to regain compliance by the end of the cure period, its common stock will be subject to the NYSE's suspension and delisting procedures. This could lead to reduced liquidity and market price, a smaller investor base, and difficulties in accessing equity markets and obtaining financing. Holders of convertible senior notes would also have the right to demand repurchase of their notes if the stock is delisted and not relisted on other specified exchanges.

EXPAND ENERGY Corp 8-K: Securities & Listing

Summary

EXPAND ENERGY Corp (EXE), formerly Chesapeake Energy Corporation, has received a notification from the New York Stock Exchange (NYSE) regarding its common stock's failure to meet the minimum average closing price requirement of $1.00 per share over a 30-day trading period. This notification, dated December 10, 2019, signifies a potential risk to the company's continued listing on the NYSE. The company has been granted a six-month period to regain compliance, with specific monthly closing price and 30-day average closing price thresholds to meet.

Key Highlights

1EXPAND ENERGY Corp (EXE) has been notified by the NYSE that its average closing stock price over the past 30 consecutive trading days fell below the $1.00 minimum requirement.
2The company has a six-month period to regain compliance with the minimum share price requirement.
3To regain compliance, the stock must close at or above $1.00 and maintain a 30-day average closing price of at least $1.00 on the last trading day of each calendar month within the cure period.
4The NYSE notification does not immediately impact the stock's listing; trading will continue under the symbol "CHK", but with an added ".BC" designation indicating "below compliance".
5Failure to regain compliance within the cure period could lead to suspension and delisting procedures by the NYSE.
6Delisting could negatively affect stock liquidity, market price, investor base, and the company's ability to access equity markets and financing.
7The notification does not affect the company's business operations, SEC reporting obligations, or result in a default under material debt agreements.

EXPAND ENERGY Corp 8-K Report, Listing Notice (Dec 13, 2019)

Summary

Key Highlights

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