SOS Limited, a blockchain service provider, has received a formal warning from the New York Stock Exchange (NYSE) due to its stock price consistently trading below $1. According to NYSE regulations, companies must maintain an average closing price of at least $1 over a 30-day trading period. SOS’s shares fell short of this requirement, triggering the noncompliance notice.
The company now has a six-month window to rectify the situation. To regain compliance, SOS must achieve a closing share price of at least $1 and maintain this average for a 30-day trading period at any time within the six-month period. If the company fails to meet these conditions by the end of the grace period, it risks suspension and eventual delisting from the NYSE.
Currently, this noncompliance notice does not impact the listing status of SOS’s shares, which will continue to trade on the NYSE as long as the company meets other listing requirements.
The decline in SOS’s share price, which recently dropped to $0.70, reflects broader challenges the company faces. The NYSE will initiate suspension and delisting procedures, posing a significant threat to the company’s market presence, if the situation remains uncorrected.
This warning follows a similar case earlier this year, where the NYSE issued a delisting threat to Bakkt, a crypto trading platform, underscoring the exchange’s strict enforcement of its listing rules.
SOS Limited now faces a critical period where it must boost its stock price to avoid delisting, a move that could have severe implications for its future in the financial markets.
