CHC share price drops below NYSE compliance level
The CHC Group’s closing share price on the New York Stock Exchange(NYSE) has been below $1.00 for over 30 consecutive days.
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Under NYSE rules, a company’s share price must stay above an average of $1.00 over 30 continuous trading days to meet the continued listing standard on the stock exchange.
The Exchange sent a notification to the CHC group on July 23 stating that the average stock price fell below the required level.
The company’s closing share price on July 23 was $0.41. The following day it dropped a further 2.44 percent to $0.40.
Under trading rules the CHC Group has 10 days to respond to the notification, outlying its plans to raise the average share price. However, if the CHC plan requires shareholder approval, then the company must receive this approval no later than the date of the next annual general meeting.
Once the NYSE approves the plan, the company has six months to ensure that the share price rises above the $1.00 average. If CHC are unable to do this then the company will be delisted from the exchange.
CHC says that the notification has no impact on the company’s continuing business operations.
The company’s share price dipped below the $1.00 mark for the first time on June 30, following a 23.59 percent single day drop.