NYSE sends second notice to FOA about noncompliance with continued listing standard

Finance of America Companies (FOA), parent company of reverse mortgage industry-leading lender Finance of America Reverse (FAR), was notified for the second time on Feb. 12 by the New York Stock Exchange (NYSE) that it was not in compliance with the exchange’s continued listing standard. This is according to an announcement from FOA issued on Friday, Feb. 16.

Echoing the language of the first such announcement in December, the company explained that NYSE “requires that companies with shares listed on the NYSE comply with the NYSE’s continued listed standards,” which state that “the average closing price of a security is not less than $1.00 over a consecutive 30 trading-day period.”

If the average closing price of a security is less than $1.00 over a consecutive 30 trading-day period, the NYSE Listed Company Manual provides for a six-month cure period to regain compliance.

Much of the rest of the language in the company’s announcement is identical to the prior statements, including notice that the company could determine that actions to cure the price could require shareholder approval. In that case, FOA would have to notify NYSE and obtain such approval “by no later than its next annual meeting and implement the action promptly thereafter.”

Over the past 30 days, FOA stock has reached or surpassed the price of $1.00 per share five times: it reached $1.01 on Jan. 22; $1.00 on Jan. 23; $1.04 on Jan. 24; $1.02 on Jan. 25 and $1.02 again on Feb. 15. As of late day trading on Feb. 16, the price stood at $0.98 per share according to Google Finance.

When reached, a spokesperson for FOA reiterated to RMD that it intends to bring its stock into compliance.

“Finance of America’s leadership remains focused on generating enhanced enterprise value for all stakeholders and ensuring the Company’s long-term success,” the spokesperson said, echoing the statement shared with RMD in December. “We intend to comply with NYSE listing standards and are actively considering steps to bring the Company back into compliance within the required time period, which we do not anticipate impacting our ongoing business operations.”

When pressed, the spokesperson referred RMD to the 8-K filing with the Securities and Exchange Commission detailing the NYSE announcement.

The highest reported level the stock reached was $11.14 per share on Apr. 30, 2021, but this was also in the immediate aftermath of going public.

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