New Source Energy Partners LP received notification Sept. 9 from the New York Stock Exchange (NYSE) notifying the Partnership that the NYSE has determined to begin proceedings to delist the Partnership's common units from the NYSE due to failure to maintain an average global market capitalization over a consecutive 30-trading-day period of at least $15 million.
The Partnership has the right to an appeal and plans to request a review of this determination by a committee of the board of directors of NYSE Regulation. While the appeal of the NYSE decision is pending, the Partnership's common units will trade on the OTC market.
Additionally, on Sept. 4, the Partnership received notice from the NYSE of the failure of the Partnership's common equity to meet the NYSE continued listing standard that requires the average closing price of a listed company's common equity to be above $1 per unit based on a period of 30 consecutive trading days. Based on NYSE continued listing standards, the Partnership has six months following receipt of the NYSE notice to cure this deficiency. The Partnership must provide notice to the NYSE of its intent to cure this deficiency or face suspension and delisting procedures. Subject to the Partnership's successful appeal described in the preceding paragraph, the Partnership will consider available alternatives, potentially including a unit combination, to cure the unit price deficiency and return to compliance with the NYSE continued listing requirement.
The notices from the NYSE do not affect the Partnership's business operations or its US Securities and Exchange Commission reporting requirements nor do they conflict with or cause an event of default under any of the Partnership's material debt agreements.