Genesis HealthCare (NYSE: GEN), the largest publicly traded post-acute and long-term care provider in the country, on Thursday announced that it has received a continued listing standard notice from the New York Stock Exchange after its shares dropped below $1 for more than 30 consecutive trading days.
The Kennett Square, Pa.-based nursing home giant can regain compliance with the exchange if, at the end of any calendar month during a designated cure period, its stock closes at $1 and has a 30-day trading average of at least $1.
Due to “extraordinary market conditions” stemming from the ongoing COVID-19 pandemic, the NYSE suspended its traditional six-month cure period for all companies with compliance issues through July 1; Genesis now has until December 26, 2020 to meet the $1 standard.
In a statement, Genesis emphasized that it more than meets the other main NYSE listing requirement: maintaining a market cap of $50 million over a period of 30 trading says.
“Currently, Genesis’s market capitalization is more than two times this threshold,” the company stated.
The company’s stock will remain on the exchange with a “.BC” suffix at the end of its ticker symbol; the de-listing warning also does not trigger any defaults or other violations of its existing debt and lease agreements, according to Genesis.
Genesis stock closed Thursday’s trading at $0.78 per share, up just under 1%. Shares hovered around $1.50 for most of the last six months, peaking at $1.77 at the end of February — before dropping as low as $0.69 on April 3, trending along with the rest of the coronavirus market volatility.
“Genesis will notify the NYSE on or before May 1, 2020 that it intends to cure the continued listing standard deficiency,” the company disclosed. “Should Genesis’s common stock price not meet the requirements during the cure period, Genesis will consider further options to cure this deficiency.”
Genesis operates more than 400 skilled nursing and other senior care sites in 25 states; its Genesis Rehabilitation Services arm provides third-party therapy coverage at 1,200 sites.