Houston-based oil company Cobalt International Energy is in violation of the listing standard at The New York Stock Exchange (NYSE) with a six month deadline to regain compliance.
Cobalt announced that on February 27, 2017, it was notified by NYSE that the company is no longer in compliance with certain continued listing standards that are applicable to Cobalt.
Cobalt’s 30-day average closing share price as of February 27, 2017 was $0.94, in violation of the listing standard set forth in Section 802.01C of the NYSE Listed Company Manual. This standard requires the trailing 30-day average closing share price to remain above $1.00.
Upon receiving notice, Cobalt has a six-month cure period to regain compliance. Within this cure period, Cobalt must have a closing share price of $1.00 or higher on the last trading day of a given month or at the end of the cure period. In addition, Cobalt’s coinciding trailing 30-day average closing share price must also be $1.00 or higher.
Cobalt said it has notified the NYSE of its intention to regain compliance within the six-month cure period. During the cure period, Cobalt’s stock will continue to be listed on the NYSE, subject to its ability to remain in compliance with other continued listing standards.
The company noted that the notice received from the NYSE does not affect the ongoing business of Cobalt, nor does it trigger any violations, including any event of default, of its secured or unsecured debt obligations.