FXCM Inc (NYSE:FXCM) a globally regulated online provider of forex trading and related services, announced that it was notified on September 3, 2015 by the New York Stock Exchange (NYSE) that it is not in compliance with the continued listing standards set forth in Section 802.01C of the Listed Company Manual of the New York Stock Exchange, Inc. because the average closing price of the Company’s common stock had fallen below $1.00 per share over a period of 30 consecutive trading days, which is the minimum average share price for continued listing on the NYSE.
FXCM’s 3 month stock chart, where you can see prices dipping below $1.00 per share starting in August and again now in September.
The Company has notified the NYSE that it intends to cure the deficiency and to return to compliance with the NYSE continued listing requirement. Under NYSE rules, the Company has six months following receipt of the notification to regain compliance with the minimum share price requirement. The Company can regain compliance at any time during the six-month cure period if the Company’s common stock has a closing share price of at least $1.00 on the last trading day of any calendar month during the period and also has 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 on the last day of the cure period.
The notice has no immediate impact on the listing of the Company’s common stock, which will continue to trade on the NYSE under the symbol “FXCM”. At this time The Company believes that neither the notice nor a possible future delisting will have an impact on FXCM’s business operation or its activities as an online FX trading broker.
FXCM has already undertaken steps to cure the price condition by announcing, on July 21, 2015, that the Company’s Board of Directors approved a 1-for-10 reverse stock split, to be voted on by shareholders on September 21, 2015, which would likely, if approved and effected, bring the Company’s stock price back within compliance of Section 802.01C.
The Company and Board of Directors believe that effecting the reverse stock split is in the Company’s and shareholders’ best interests and encourage all shareholders of record to vote in favor for the reverse stock split as this could ensure the avoidance of a delisting.
To view the official notice from FXCM, click here.