Aeropostale disclosed that it received a notice on Oct. 30 from the New York Stock Exchange (NYSE) that it is not in compliance with listing rules because as of Oct. 28, 2015, the average global market capitalization over a consecutive 30 trading-day period was less than $50 million and, at the same time, stockholders’ equity was less than $50 million. The notice has no immediate impact on the listing of the company’s common stock.
The teen denim retailer said it will notify the NYSE by Nov. 13 that it intends to submit a plan to cure the deficiency and return compliance. It is taking appropriate steps pursuant to the NYSE listing standards to regain compliance within the required timeframe. During this period, Aeropostale’s common stock will continue to be listed and traded on the NYSE.
Under the NYSE regulations, Aeropostale has 45 days from the receipt of the notice to submit a plan advising the NYSE of definitive action the company has taken, or is taking, that would bring the company into conformity with continued listed standards within 18 months of receipt of the notice. Within 45 days of receipt of the plan, the NYSE will make a determination as to whether the company has made a reasonable demonstration of an ability to come into conformity with the relevant standards in the 18 month period.
If the NYSE accepts the plan, the company’s common stock will continue to be listed and traded on the NYSE during the 18 month cure period, subject to the company’s compliance with other continued listing standards, and the company will be subject to quarterly monitoring by the NYSE for compliance with the plan.