OnDeck (NYSE: ONDK), an online lender serving SMEs, has received a notice from the New York Stock Exchange (NYSE) as the company does not meet the continued listing standard that requires OnDeck to maintain a minimum average closing price of $1.00 per share over a period of 30 consecutive trading days.
Before the Coronavirus pandemic hit, OnDeck was in excess of the requirement trading over $3 per share but the crisis hit the online lender hard sending shares under one dollar – at one point trading at $0.54 per share, an all-time low. At one point following its initial public offering, OnDeck shares traded over $24.
OnDeck said it has notified the NYSE of its intent to cure the deficiency and return to compliance with the NYSE continued listing requirements and is evaluating options to do so.
Typically, firms may complete a reverse split of shares to immediately become compliant under the exchange’s rules.
At the end of last week, during a broad market rally as optimism returned that the country was turning the corner on the Coronavirus, OnDeck’s shares traded above $1. Shares in OnDeck closed at $0.97/share.
Under the NYSE’s rules, the period allowed for a company to meet the standard is for six months following receipt of the notification. However, the NYSE has extended the cure period relating to this listing standard to January 1, 2021, in recognition of unprecedented market declines resulting from COVID-19.
The Company can regain compliance if, by the end of the cure period, OnDeck common stock has a closing share price of at least $1.00 and an average closing share price of at least $1.00 over the preceding 30 trading-day period. Alternatively, the Company can also demonstrate an accelerated cure based on a $1.00 share price on both the last trading day of any calendar month within the cure period and the average share price of the 30-trading days preceding the end of that month.
During the cure period, the OnDeck’s shares will continue to trade on the NYSE under the symbol “ONDK” but will have an added designation of “.BC” to indicate the status of the shares as “below compliance” subject to compliance with other continued listing requirements.