Key Energy Services Inc. (NYSE: KEG) has received a letter from the New York Stock Exchange (NYSE) notifying it that, for 30 consecutive trading days, the price for Key's common shares was below the minimum $1 per share requirement for continued listing on the NYSE under Item 802.01C of the NYSE's Listed Company Manual. This notice does not have an immediate effect on the listing of Key's common shares.
Key has 180 days, or until March 2, 2016, to regain compliance with the NYSE's minimum share price requirement. Key will explore all options to regain compliance with the NYSE's continued listing standard and, in accordance with NYSE rules, Key will notify the NYSE within 10 business days of its receipt of the NYSE notice of its intent to cure this deficiency. Under the NYSE standards, the company can avoid delisting if, during the six-month period following receipt of the NYSE notice, on the last trading day of any calendar month, Key’s common stock has a closing price per share and a 30-trading-day average closing share price of at least $1.
Key intends to maintain the listing of its common shares on the NYSE and will consider available alternatives, including a reverse stock split, in order to cure the stock price deficiency and return to compliance with the NYSE continued listing requirement. As a Maryland corporation, a reverse stock split would only require the approval of the board of directors and the posting of appropriate NYSE notices.
The NYSE notification does not affect Key'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.