Markforged has been notified by the New York Stock Exchange (NYSE) that the company is not in compliance with Rule 802.01C of the NYSE’s Listed Company Manual (Rule 802.01C) relating to the minimum average closing price of the Company’s common stock required over a 30-day period.
Rule 802.01C of the NYSE's Listed Company Manual requires a company's common stock trade at a minimum average closing price of $1.00 over a consecutive 30 trading-day period. Markforged's stock has been trading on the NYSE at under $1.00 since March 17, dipping as low as $0.76 on April 18.
The notice, which was given on April 18, 2023, does not result in the immediate delisting of the Company’s common stock from the NYSE, but gives the company six months to once again comply with the Rule.
Markforged says it intends to notify the NYSE within ten business days of its intent to regain compliance with Rule 802.01C. Per the NYSE Listed Company Manual, Markforged can regain compliance at any time within the six-month cure period if, 'on the last trading day of any calendar month during the cure period, the common stock has a closing share price of at least $1.00 and an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of that month.'
The company has confirmed it 'fully intends' to remain listed on the NYSE and will 'consider the best available alternatives', which include but are not limited to a reverse stock split, subject to stockholder approval, 'if necessary to regain compliance.' A reverse stock split is a reduction in the number of a company's outstanding shares in the market, and is typically based on a predetermined ration. As an example, a 2:1 reverse stock split would see an investor receive one share for every two shares they currently own.
Markforged's common stock will continue to be listed on the NYSE during the six-month cure period, subject to the Company’s compliance with other NYSE continued listing requirements.
Markforged announced its intention to list on the NYSE in February 2021 via a reverse merger with Special Purpose Acquisition Corp One. Its listing was confirmed in July of that year. The company has since launched its largest machine yet in the shape of the FX20 composite system, acquired both Teton Simulation and Digital Metal, and moved into a new corporate headquarters. It has also found itself embroiled in an ongoing legal dispute with Continuous Composites, which centres on alleged IP infringement by Markforged.
