Trinity Place Holdings (NYSE: TPHS) shares fell in extended trading Thursday as the real estate company received a notice from NYSE American revealing non-compliance with the NYSE American Company Guide due to a stockholders’ deficit and losses from continuing operations or net losses in three of the last four fiscal years.
Trinity Place received a notice on November 29, 2023, from NYSE American LLC, stating the company needs to comply with the NYSE American continued listing standards as outlined in sections 1003(a)(i) and (ii) of the NYSE American Company Guide. This non-compliance is attributed to the reported stockholders’ deficit as of September 30, 2023, along with losses from continuing operations and net losses in three of its four most recent fiscal years, ending December 31, 2022.
The Notice received by Trinity Place Holdings (NYSE: TPHS) does not immediately impact the listing of the Company’s shares of common stock. The Common Stock will persist in being listed and traded on the NYSE American during the specified period, provided the Company adheres to the other listing requirements of the NYSE American. Trading will continue under the symbol TPHS with an additional “.BC” designation, indicating the Common Stock’s status as “below compliance.” The Notice does not disrupt the company’s ongoing business operations or its reporting obligations with the Securities and Exchange Commission (SEC).
Trinity Place is obligated to submit a compliance plan by December 29, 2023. This plan should outline the company’s strategy to restore compliance with Section 1003(a)(i) and (ii) of the NYSE American Company Guide. Trinity Place aims to achieve this compliance by May 29, 2025.
Section 1003(a)(i) of the NYSE American Company Guide mandates that a listed company’s stockholders’ equity must be a minimum of $2.0 million if it has reported losses from continuing operations and net losses in two of its three most recent fiscal years. Meanwhile, Section 1003(a)(ii) of the NYSE American Company Guide stipulates that a listed company’s stockholders’ equity should be at least $4.0 million if it has reported losses from continuing operations and net losses in three of its four most recent fiscal years.
Trinity Place Holdings (NYSE: TPHS) is exploring various options to restore compliance with the stockholders’ equity requirement. While no definitive decisions have been reached, ongoing discussions and potential transactions might offer a path for the company to submit a comprehensive compliance plan. If these transactions materialize, they could contribute to meeting the NYSE American’s listing standards. However, there is no guarantee that the real estate firm will achieve compliance within the stipulated time frames set by the NYSE American’s continued listing standards.
Trinity Place stock plunges over 6% in the extended trading after skyrocketing 54.20% during the regular trading session to close at $0.1761 on Wednesday.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
