The New York Stock Exchange has notified The PMI Group Inc., Walnut Creek, Calif., that it is not in compliance with the exchange's continued listing standard and faces suspension and delisting.
NYSE rules require a stock to maintain a minimum average closing price of $1 per share for 30 consecutive days.
The last time PMI closed at or above $1 per share was July 29, and the last time it reached that mark during a trading day was Aug. 1. A disastrous second quarter results report released on Aug. 4 wiped more than half of the stock's value on that day.
Since then, PMI has traded as low as $0.21 per share. Late Friday morning, the stock was at $0.32 per share, down $0.02 on the day.
PMI said it has notified NYSE that it would seek to regain compliance with the minimum share price requirement. Under NYSE rules, it has six months from receipt of the notice or until its next annual meeting of stockholders, if stockholder approval is required, to cure the deficiency. During the cure period, PMI's common stock will continue to be listed and trade on the NYSE.
To regain compliance PMI's common stock on the last trading day of any calendar month needs to have a closing price of at least $1 and an average closing share price of at least $1 over the 30 trading-day period ending on the last trading day of that month or the cure period.
If it takes an action that will require approval of its stockholders, PMI will regain compliance if the price promptly exceeds $1 per share, and stays above the level for the following 30 trading days.
If PMI fails to regain compliance within the required time period, NYSE will commence suspension and delisting procedures, the company said.
