Borr Drilling has joined a growing list of offshore drilling contractors facing a possibility of being delisted from the New York Stock Exchange (NYSE) amid a difficult period for the services sector affected by budget cuts by oil and gas operators.
Borr has received a written notice from the NYSE that the company is not in compliance with the NYSE continued listing standard with respect to the minimum average share price required by the NYSE.
Borr’s average closing price of its common shares had fallen below $1.00 per share over a period of 30 consecutive trading days.
Under the NYSE rules, the company 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.
Effective 21 April 2020, the NYSE has provided relief for issuers which are not compliant with the minimum $1 per share standard, providing issuers additional time to cure the non-compliance, which for the company means 26 December 2020.
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 its compliance with other applicable NYSE listing requirements.
Other drilling contractors facing a similar situation as Borr include Noble Corporation , Seadrill , Pacific Drilling , and Valaris while Diamond Offshore has already been delisted from the NYSE following its filing for Chapter 11 bankruptcy protection in late April.
Following the NYSE delisting, Diamond’s common stock started trading on the OTC Pink markets under the symbol “DOFSQ.”