Midstates Petroleum Co. Inc. (NYSE: MPO) received notification on July 16 from the New York Stock Exchange (NYSE) that the price of the company’s common stock has fallen below the NYSE’s continued listing standard. The NYSE requires that the average closing price of a listed company’s common stock not be less than $1.00 per share for a period of over 30 consecutive trading days.
Under NYSE rules, the company can avoid delisting if, during the six month period following receipt of the NYSE notice and on the last trading day of any calendar month, the company’s common stock price per share and 30-trading-day average share price is at least $1.00. During this period, Midstate’s common stock will continue to be traded on the NYSE, subject to compliance with other continued listing requirements.
On July 15, Midstates announced a 1-for-10 reverse stock split of the company’s common stock, which will be effective as of the close of business on Aug. 3. The company anticipates that, when completed, the reverse stock split will cure the deficiency and return compliance with the NYSE continued listing requirement.
The NYSE notification does not affect the company’s business operations or its US Securities and Exchange Commission reporting requirements, and does not conflict with, or cause, an event of default under any of the company’s material debt or other agreements.