Offshore drilling contractor Seadrill Limited has been given a continued listing standard notice from the New York Stock Exchange (NYSE).
According to the notice, received on 26 March 2020, the company is not in compliance with the NYSE continued listing standard with respect to the minimum average share price required by the NYSE because the average closing price of its common shares had fallen below $1.00 per share over a period of 30 consecutive trading days.
As of 24 March 2020, the average closing price per share of the company over the preceding 30-trading day period was $0.99.
Cure period
Under the rules of the stock exchange, Seadrill can regain compliance with this standard and cure this deficiency if, during the six-month period following receipt of the NYSE notice, on the last trading day of any calendar month or on the last trading day of this six-month cure period, the company’s common shares have a closing share price of at least $1.00 and an average closing share price of at least $1.00 over the 30-trading day period ending on the last trading day of that month or the last trading day of the cure period.
If the company determines to remedy the non-compliance by taking action that will require shareholder approval, the six-months cure period requirement does not apply, as long as the company seeks shareholder approval by no later than its next annual general meeting, and implements such action promptly afterwards.
In this instance, the price condition will be deemed cured if the price promptly exceeds $1.00 per share, and the price remains above the level for at least the following 30 trading days. The company has responded to the NYSE to confirm its intent to cure this non-compliance.
During this period, the company’s common shares will continue to be traded on the NYSE, subject to the Company’s compliance with other applicable NYSE listing requirements.
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