Finance of America Faces NYSE Delisting, Plans Reverse Stock Split
Ticker: FOACW · Form: 8-K · Filed: Jul 5, 2024 · CIK: 1828937
Sentiment: bearish
Topics: delisting, compliance, reverse-stock-split
TL;DR
NYSE warning Finance of America Companies Inc. for low stock price; reverse split coming.
AI Summary
Finance of America Companies Inc. announced on July 2, 2024, that it received a notice from the New York Stock Exchange (NYSE) indicating non-compliance with listing standards due to its low stock price. The company has 18 months to regain compliance, during which it plans to implement a reverse stock split to increase its share price.
Why It Matters
This filing signals potential financial distress for Finance of America Companies Inc., as its low stock price triggers a delisting warning from the NYSE, impacting investor confidence and potentially its ability to raise capital.
Risk Assessment
Risk Level: high — The company is at high risk due to receiving a delisting notice from the NYSE, indicating significant financial challenges and potential loss of market access.
Key Numbers
- 18 months — Compliance Period (Timeframe provided by NYSE to regain compliance)
Key Players & Entities
- Finance of America Companies Inc. (company) — Registrant
- New York Stock Exchange (company) — Listing Exchange
- July 2, 2024 (date) — Date of notice
FAQ
What specific NYSE listing standard did Finance of America Companies Inc. fail to meet?
The filing indicates the company received a notice from the NYSE regarding non-compliance with the minimum share price requirement.
What is Finance of America Companies Inc.'s plan to address the NYSE delisting notice?
The company plans to implement a reverse stock split to increase its share price and meet the NYSE's continued listing standards.
What is the deadline for Finance of America Companies Inc. to regain compliance with NYSE listing standards?
The company has 18 months from the date of the notice (July 2, 2024) to regain compliance.
What is the primary reason cited for the NYSE notice?
The primary reason cited is the company's low stock price, which has fallen below the minimum threshold required for continued listing on the NYSE.
Where is Finance of America Companies Inc. incorporated and what is its principal executive office address?
Finance of America Companies Inc. is incorporated in Delaware and its principal executive offices are located at 5830 Granite Parkway, Suite 400, Plano, Texas 75024.
Filing Stats: 1,095 words · 4 min read · ~4 pages · Grade level 13.1 · Accepted 2024-07-05 16:04:32
Key Financial Figures
- $0.0001 — stered Class A Common Stock, par value $0.0001 per share FOA New York Stock Exchange
- $11.50 — Common Stock"), at an exercise price of $11.50 per share. On July 2, 2024, the NYSE no
Filing Documents
- foa-20240702.htm (8-K) — 32KB
- 0001828937-24-000058.txt ( ) — 213KB
- foa-20240702.xsd (EX-101.SCH) — 2KB
- foa-20240702_def.xml (EX-101.DEF) — 19KB
- foa-20240702_lab.xml (EX-101.LAB) — 32KB
- foa-20240702_pre.xml (EX-101.PRE) — 19KB
- foa-20240702_htm.xml (XML) — 4KB
01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard Transfer of Listing
Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard Transfer of Listing. Finance of America Companies Inc. (the "Company") maintains warrants that are currently listed to trade on the New York Stock Exchange (the "NYSE") under the symbol "FOA.WS" (the "Warrants"). Each Warrant is exercisable for one share of the Company's Class A common stock, par value $0.0001 per share (the "Common Stock"), at an exercise price of $11.50 per share. On July 2, 2024, the NYSE notified the Company, and, on July 3, 2024, publicly announced, that the NYSE has determined to (a) commence proceedings to delist the Warrants and (b) immediately suspend trading in the Warrants due to "abnormally low selling price" levels pursuant to Section 802.01D of the NYSE Listed Company Manual. The Company does not intend to appeal the NYSE's determination with respect to the Warrants. The delisting procedures for the Warrants will not affect trading in the Company's Common Stock, which will continue on the NYSE under the symbol "FOA," subject to the Company's compliance with the NYSE's other continued listing requirements. Furthermore, delisting of the Warrants is not anticipated to impact the expected reverse stock split of the Company's Common Stock described in the Definitive Information Statement filed by the Company with the U.S. Securities and Exchange Commission (the "SEC") on June 27, 2024, the ongoing business operations of the Company or the Company's reporting requirements with the SEC. Cautionary Note Regarding Forward-Looking Statements This Current Report on Form 8-K contains forward-looking statements within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts or statements of current conditions, but instead represent only the Company's beliefs regarding future events, many of which, by their nature, are inherently uncertain and outside of
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Finance of America Companies Inc. Date: July 5, 2024 By: /s/ Matthew A. Engel Name: Matthew A. Engel Title: Chief Financial Officer