Diversicare Healthcare Services this week announced that its common stock has been removed from the Nasdaq exchange after officials denied an appeal of its delisting notice.
The Brentwood, Tenn.-based skilled nursing operator had received an initial warning from the exchange in late December, after its market value of listed securities (MVLS) dropped below the mandatory minimum of $35 million for 30 consecutive trading days.
At the time, Diversicare’s management pledged to “consider all available options to regain compliance” with the Nasdaq’s standards, but the exchange’s hearing panel on Wednesday rejected the provider’s attempt to appeal the ruling. Nasdaq suspended trading of Diversicare shares on its exchange effective Thursday.
That same day, the company’s shares migrated to the OTCQX market under its existing ticker symbol of DVCR.
“The Company will remain a reporting company under the Securities Exchange Act of 1934, and continue to be subject to the public reporting requirements of the Securities and Exchange Commission,” Diversicare noted in the announcement.
The move wasn’t necessarily unexpected: On the company’s second-quarter 2019 earnings call earlier this month, Diversicare CEO Jay McKnight told investors that the company had already received approval to trade on the over-the-counter market amid the ongoing Nasdaq appeal process.
Diversicare, which operates 72 skilled nursing and senior housing facilities, has endured a string of shaky quarters, though McKnight was upbeat this summer after reaching a $9.5 million settlement with the Department of Justice to resolve a long-standing investigation into its therapy practices.
McKnight also touted the company’s strategic decision to exit the Kentucky marketplace and its participation in a Texas program intended to boost Medicaid reimbursement rates, classifying the recent moves as a “near complete reset” of the provider’s operations.
“We’ve made significant changes that we believe will improve our outlook,” he said during the earnings call.