NYSE MKT (the Exchange) has notified Lucas Energy Inc. (NYSE MKT: LEI) that the company has been granted an extension with a targeted completion date of Aug. 28 to regain compliance with the NYSE MKT continued listing standards.
On Feb. 28, 2014, Lucas received notice that the company was below certain of the NYSE MKT continued listing standards, as set forth in Section 1003(a)(iii) of the NYSE MKT Company Guide, due to its financial condition. Based on information provided by the company through March 31, the Exchange has determined that Lucas Energy has made a reasonable demonstration of its ability to regain compliance by the end of the revised period which has been extended to Aug. 28.
By the conclusion of this extension, Lucas must be in compliance with the Exchange's continued listing standards. Aug. 28 represents the maximum allowable 18-month period within which to regain compliance as outlined in Section 1009(b) of the Company Guide. Failure to demonstrate adequate progress within that timeframe will result in the Exchange initiating delisting proceedings pursuant to Section 1009 of the Company Guide.
"We are pleased that the Exchange has granted this extension and providing the time required to continue to execute on our proposed business combination with Victory Energy," said Anthony C. Schnur, CEO of Lucas Energy. "The recently signed agreements with Victory are currently funding drilling activities and certain working capital needs. We anticipate the initial production from the participation in the seven non-operated Eagle Ford wells to fully commence in mid-summer of this year."