Nasdaq Issues Delisting Warning for Skilled Nursing Operator Diversicare

The Nasdaq stock exchange in late December issued a delisting warning for Diversicare Healthcare Services, Inc. (Nasdaq: DVCR) after the skilled nursing provider’s total market cap fell below the required threshold.

For 30 consecutive trading days ending December 19, Diversicare’s market value of listed securities (MVLS) was lower than Nasdaq’s mandatory $35 million total, the Brentwood, Tenn.-based provider announced before the Christmas holiday.

Diversicare now has until June 17 to regain compliance; if the company’s overall MVLS stays at $35 million or more for 10 consecutive days during that span, the stock exchange will drop the warning.

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“The company actively monitors the price of the common stock and will consider all available options to regain compliance with the continued listing standards,” Diversicare noted in a filing with the Securities and Exchange Commission.

Failure to maintain that market value will result in a formal delisting notification from Nasdaq, which Diversicare can appeal.

The provider has a network of 76 skilled nursing facilities concentrated largely in the South and Midwest, with nearly 8,000 available beds as of the third quarter of 2018. During that same period, Diversicare reported a $7.4 million loss that management primarily blamed on costs related to an ongoing False Claims Act investigation into its therapy practices.

Diversicare’s stock closed the year’s trading at $2.37 per share, up 11 cents for a 4.9% gain.

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