Lannett Announces Receipt of Notice of Non-Compliance from NYSE Related to Stock Price
TREVOSE, PA (STL.News) Lannett Company, Inc. (NYSE: LCI) Friday announced that it has received written notice from the New York Stock Exchange (NYSE) dated March 14, 2022, notifying the company that it is not in compliance with the continued listing standards set forth in Section 802.01C of the NYSE Listed Company Manual because the average closing price of the company’s common stock was less than $1.00 per share over a consecutive 30 trading-day period.
The company has six months from the date of the Notice to regain compliance with the NYSE continued listing standard. Lannett is evaluating all available options to regain compliance with the NYSE’s continued listing standards, which may include transactions that are subject to the approval of Lannett’s stockholders, in which case, Lannett would have until its next annual meeting of stockholders to obtain stockholder approval for such action, notwithstanding the six-month cure period referenced above. Lannett would be required to implement the action promptly after receiving stockholder approval, and the minimum share price requirement will be deemed cured if the price promptly exceeds $1.00 per share, and the price remains above that level for at least the 30 trading days following the implementation of such action.
As previously disclosed in the company’s Current Report on Form 8-K filed with the Securities and Exchange Commission (SEC) on March 4, 2022 (March 4, 2022 Form 8-K), the company received notice on March 2, 2022, that it was not in compliance with the continued listing standard set forth in Section 802.01B of the NYSE’s Listed Company Manual because the Company’s average market capitalization was less than $50 million over a consecutive 30 trading-day period and the most recently reported stockholders’ equity of the Company was also less than $50 million.
The Notice has no immediate impact on the listing of the Company’s common stock, which will continue to be listed and traded on the NYSE during the cure period under the trading symbol “LCI,” subject to the company’s execution of the plan of compliance referenced in the March 4, 2022 Form 8-K and all other listing requirements of the NYSE. However, the common stock trading symbol will have an added designation of “BC” to indicate that the status of the common stock is “below compliance” with the NYSE continued listing standards. The “BC” indicator will be removed at such time as the Company regains compliance.