For the second time in seven months, Chattanooga-based CBL Properties announced it would take steps to stay listed on the New York Stock Exchange.
The shopping center developer said Wednesday it received notification from the NYSE that as of Tuesday, CBL is no longer in compliance with criteria that requires listed companies to maintain an average closing share price of at least $1 over a consecutive 30 trading-day period.
Shares of CBL, which owns Hamilton Place and Northgate malls in Chattanooga, closed Tuesday at 87 cents.
"The company intends to pursue measures to cure the share price non-compliance," CBL said in a statement.
Measures include a reverse stock split of the company's common shares, subject to approval by its board of directors and stockholders if such action is necessary.
In a reverse split, shares are effectively merged to form a smaller number. In a 1-for-2 reverse split, for example, an investor would come out owning one share for every two owned previously. At the end of the reverse split, there's no difference in the company's market capitalization.
In accordance with NYSE rules, the company said it has a period of six months from receipt of the notice to regain compliance.
CBL's common stock will continue to be listed and traded on the exchange during this period, subject to the company's compliance with other NYSE-continued listing requirements.
Under NYSE rules, CBL can regain compliance at any time during the six-month cure period if the common stock has a closing share price of at least $1 and an average closing share price of at least $1 over the 30 trading-day period.
According to CBL, the NYSE notification has no impact on its operations or its Securities and Exchange Commission reporting requirements, and the action does not cause an event of default under any of the company's material debt or other agreements.
Last August, the company received a similar notice from the exchange, but its shares later topped $1 before falling back under the threshold again.