Amplify Energy Corp. (AMPY) last week received a written notice for compliance from the New York Stock Exchange (“NYSE”).
The August 31 letter stated that the company is not complying with standards of the entity to remain enlisted. Referring item 802.01B of the NYSE Listed Company Manual the NYSE urged that the company is not in meeting the criteria of $50 million in certain perspectives. Company’s last reported stock holders’ equity and average global capitalization over a consecutive 30 trading-day period were both below that benchmark of $50 million necessary to continue listing.
As per NYSE procedures, after receipt of the notice AMPY has 45 days to submit a business plan. Through that, company has to demonstrate strategy to resume compliance of the said procedures to continue listing on NYSE. As per NYSE procedures, company will have a period of 18 months to execute and achieve listing standards.
The company is in efforts of developing and submitting a strategic layout within 45 days of receiving that letter. Company through its reply will show its ability to regain with the NYSE compliance standards to continue enlistment. The submitted plan will then be reviewed by the Listings and Compliance Committee of the NYSE for further disposals.
If the plan get accepted by the Committee then company will continue trading but subject to compliance review on quarterly basis. The committee will also monitor company’s business plan on quarterly basis. If the business plan failed to be accepted by the committee, then company will have to face delisting and ceased to be trading on the NYSE.
Company’s common stock will continue trading on the NYSE as the notice bear no impact on them. The company will remain operating its business activities unharmed by the notice served. Also the notice in receipt will not eliminate requirement of SECP reporting by the company. It will not be in conflict with or force any insolvency caused otherwise by the debt or agreements by the company.