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The New York Stock Exchange has notified coworking specialist WeWork that it will be delisted from the exchange in six months if its share price doesn't return to above $1, the standard benchmark for keeping a company on the NYSE.
WeWork has been in the penny stock realm for about a month now. Its stock dropped under the dollar threshold for the first time March 10. The last time WeWork traded for more than a dollar per share was March 21, when it edged up to $1.07.
The next day, it dropped below a dollar and has stayed there since. As of Wednesday, it traded for 48 cents per share. Its peak since going public as a SPAC was in October 2021, when WeWork shares fetched just over $13.
“The company intends to consider a number of available alternatives to cure its non-compliance with the applicable price criteria in the NYSE’s continued listing standards,” WeWork said in a statement on Wednesday, though it didn't offer any specifics.
A reverse split could be one way to achieve a higher stock price, at least in the short run. Companies facing delisting often employ that strategy.
WeWork can regain NYSE compliance during the next six months if, on the last trading day of any calendar month during the the six-month period, the company has a closing share price of at least $1. It also has to have an average closing share price of at least $1 over the 30-trading day period ending on the last trading day of that same month.
In the meantime, WeWork still struggles with debt and to turn a profit. As of March, SoftBank Group was in talks to convert about $1B of debt it has provided WeWork into equity. SoftBank already owns about 55% of WeWork.
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