Key Energy Services Inc. (NYSE: KEG) was notified by the New York Stock Exchange (NYSE) on Sept. 2 that it is not in compliance with the continued listing standards because the average closing price of the company's common stock was less than $1 over a consecutive 30-trading-day period. To cure the deficiency in order to regain compliance with listing requirements, Key Energy Services anticipates that it will request shareholder approval at its 2016 annual meeting, to be held on a date yet to be determined. Stockholder approval is required for a reverse stock split involving a reverse stock split ratio in excess of 1-for-10.
Under the NYSE rules, the company's common stock will continue to be traded on the NYSE until the 2016 annual meeting, subject to the company's compliance with other continued listing requirements.
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.