|Lab, Your answer follows......Actually I kinda like the way the Rules are laid out on Delisting, they seem to be in MUX's favor, unlike the typical Company faced with Delisting.|
the last day of december could be interesting in order to get the 1$ in average .but the rules are unclear to be delisted . does the nyse need each close above or only the average ?
Lab - GOOD QUESTION -The answer to your question lies in Rule 802.01C
802.01C Price Criteria for Capital or Common Stock A company will be considered to be below compliance standards if the average closing price of a security as reported on the consolidated tape is less than $1.00 over a consecutive 30 trading-day period.
DEFINITION of 'Consolidated Tape' An electronic program that provides continuous, real-time data on trading volume and price for exchange-traded securities. Through the consolidated tape, numerous major exchanges, including the Nasdaq, the Chicago Board Options Exchange and the New York Stock Exchange, report their trades and quotes. Securities often trade on more than one exchange, and the consolidated tape reports a security's trading activity for all of these exchanges, not just its primary exchange.
Read more: Consolidated Tape Definition | Investopedia investopedia.com
Again I like the way the Rules are written as it gives a lot of wiggle room before delisting in the case of a Company such as McEwen Mining, with lot's of Irons in the Fire, and $30M Cash Balance.
But Regardless of there being lots of wiggle room in the NYSE Rules for a company such as McEwen Mining..........., Rob did state:
"We've made good progress in a difficult market. This year we strengthened our balance sheet, increased production, and decreased our costs," said Rob McEwen, Chief Owner. "I'm not going to take this lying down, I have no intention of being delisted from the world's premier stock exchange."
Just a taste of the rules are highlighted below along with a Link to all the NYSE Rules of Delisting
And regardless of what happens the last day of December, will still have until June as Rob Stated because if MUX does Filing for delisting, as we still have 6 months until the June AGM before a Delisting would occur.
Perhaps Rob could have been a little more clearer in his statement about the price needing to remain above a $1.00.
The NYSE rules provide that since the resolution to implement a reverse split requires the approval of the Company's shareholders, its stock will continue to trade on the NYSE, subject to compliance with all other NYSE requirements, provided that the Company must obtain the shareholder approval by no later than its next AGM, and must implement the action promptly thereafter. The price condition will be deemed cured if the price promptly exceeds $1.00 per share, and the price remains above the level for at least the following 30 trading days, otherwise the Company's stock will be delisted from the NYSE. If the Company regains compliance with the pricing requirement prior to implementing the reverse split, the Company can elect not to implement the reverse split.
IMHO as a small Retail Investor with lots of knowledge as to Rob's Business Acumen Efforts, he will undoubtably procure an Alternative to Delisting. I'm sure he can find a way without interfering with his specific plans to early, to create McEwen Mining a power house Bigger Than GG, given unforseen events that took place, after he began his efforts in to grow in MUX in to a Mining Powerhouse.
MUX would be on the S&P 500 and well on its way catching up with GG, had it not been for the Gold Manipulation and the Creation of ETF's. Manipulation devaluing the POG, and ETF's taking away from Capital Investments in Mining by Creating an easy way for investors to invest without the Inherent Risks of investing directly into Mining Companies.
The entire Rules NYSE Section 8 Suspension and Delisting
804.00 • The Committee, in its sole discretion upon written motion of either party or upon its own motion, may extend any of the time periods specified above.
802.02 Evaluation and Follow-Up Procedures for Domestic CompaniesThe following procedures shall be applied by the Exchange to domestic companies that are identified as being below the Exchange's continued listing criteria. Notwithstanding the above, when the Exchange deems it necessary for the protection of investors, trading in any security can be suspended immediately, and application made to the SEC to delist the security.
Once the Exchange identifies, through internal reviews or notice (a press release, news story, company communication, etc.), a company as being below the continued listing criteria set forth in Para. 802.01 (and not able to otherwise qualify under an original listing standard), the Exchange will notify the company by letter of its status within 10 business days. This letter will also provide the company with an opportunity to provide the Exchange with a plan (the "Plan") advising the Exchange of definitive action the company has taken, or is taking, that would bring it into conformity with continued listing standards within 18 months of receipt of the letter. Within 10 business days after receipt of the letter, the company must contact the Exchange to confirm receipt of notification, discuss any possible financial data of which the Exchange may be unaware, and indicate whether or not it plans to present a Plan; otherwise, suspension and delisting procedures will commence. If the company submits a Plan, it must identify specific quarterly milestones against which the Exchange will evaluate the company's progress.
The company has 45 days from the receipt of the letter to submit its Plan to the Exchange for review; otherwise, suspension and delisting procedures will commence. If the company is determined to be below the criteria listed in Section 802.01B, the Plan it presents must demonstrate how it will return to compliance with the applicable continued listing standard by the end of the Plan period.
In any event, all companies submitting a Plan must include quarterly financial projections, details related to any strategic initiatives the company plans to complete, and market performance support. Exchange staff will evaluate the Plan, including any additional documentation that supports the Plan, and make a determination as to whether the company has made a reasonable demonstration in the Plan of an ability to come into conformity with the relevant standard(s) within 18 months. The Exchange will make such determination within 45 days of receipt of the proposed Plan, and will promptly notify the company of its determination in writing.
The company must disclose receipt of the letter by issuing a press release disclosing the fact that it has fallen below the continued listing standards of the Exchange within the time period allotted by SEC rules for the making of a filing with respect to Exchange notification of that event, but no longer than four business days after notification. If the company fails to issue this press release during the allotted time, the Exchange will issue the requisite press release.
If the Exchange does not accept the Plan, the Exchange will promptly initiate suspension and delisting procedures and issue a press release disclosing the forthcoming suspension and application to the SEC to delist the company's securities.
If the Exchange accepts the Plan, the Exchange will review the company on a quarterly basis for compliance with the Plan. If the company fails to meet the material aspects of the Plan or any of the quarterly milestones, the Exchange will review the circumstances and variance, and determine whether such variance warrants commencement of suspension and delisting procedures. Should the Exchange determine to proceed with suspension and delisting procedures, it may do so regardless of the company's continued listing status at that time. The Exchange will deem the Plan period over prior to the end of the 18 months if a company is able to demonstrate returning to compliance with the applicable continued listing standards, or achieving the ability to qualify under an original listing standard, for a period of two consecutive quarters. In any event, a company that does not meet continued listing standards at the end of the 18-month period, will be subject to the prompt initiation of suspension and delisting procedures.
If the company, within twelve months of the end of the Plan period, is again determined to be below continued listing standards, the Exchange will examine the relationship between the two incidents of falling below continued listing standards and re-evaluate the company's method of financial recovery from the first incident. It will then take appropriate action, which, depending upon the circumstances, may include truncating the procedures described above or immediately initiating suspension and delisting procedures.