The New York Stock Exchange notified Regis Corp. that because of its sliding market capitalization and shareholder equity figures, it faces possible delisting.
Shares of the Minneapolis-based Regis, which announced the news Wednesday, have fallen 70% since the start of the year. Shares closed Wednesday at 59 cents, up 7.7% on a day when the general stock markets also had an up day.
In 2018, the stock was trading between $14.42 and $21.83.
Regis said in the Wednesday news release that it will submit a plan to regain compliance with New York Stock Exchange (NYSE) standards.
The salon company has been in a yearslong transformation to an all-franchise model and has seen a number of CEO changes during that time. The transition to an all-franchise model was completed last year, but it has done little to revive the company's share price.
The NYSE has a number of standards that companies must maintain to continue being listed on their exchange. Among them: Companies must maintain a share price above $1 a share for 30 consecutive days, and market capitalization and total shareholder equity must be above $50 million.
On June 10, NYSE notified Regis that its average share price over the previous 30 trading days was 89 cents a share and that its market cap over that period averaged $41 million. Regis' last reported stockholders' equity was $11.1 million as of March 31.
The notice is the first step in a long process before a company is delisted. The NYSE allows companies 45 days to submit a plan to regain compliance with listing standards and 18 months to regain compliance.
