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Chegg Faces NYSE Delisting Threat Over Low Stock Price
25 Jul
Summary
- Chegg received a NYSE notice for failing minimum share price requirement.
- The company has six months to regain compliance with the exchange.
- A reverse stock split is among options Chegg may consider.
Chegg Inc. has received a notification from the New York Stock Exchange indicating non-compliance with minimum share price rules. The educational technology company's common stock's average closing price fell below $1.00 over a 30-trading-day period that concluded on Wednesday. This marks the second such warning from the NYSE for Chegg.
The company now has a six-month window to rectify the situation and regain compliance. During this period, Chegg must ensure its common stock achieves a closing price of at least $1.00 on the final trading day of any month, alongside meeting the 30-day average requirement.
Chegg has stated its intention to inform the NYSE of a plan to regain compliance. This plan may involve a reverse stock split, pending board approval. The company will monitor its stock performance and explore available options throughout the cure period.
The NYSE notice does not immediately impact the trading of Chegg's stock. However, failure to regain compliance by the end of the six-month period will subject the company's common stock to suspension and delisting processes.
