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SOS Limited, a blockchain-based service solution provider, has received a noncompliance letter from the New York Stock Exchange (NYSE) due to underperforming stock prices. The trading price of its American depositary shares (ADSs) has dropped below $1 over a consecutive 30-trading-day period.
SOS is legally required to bring its share price and average share price back above $1 in six months or risk suspension and delisting from the NYSE.&nbsp;
<h3 id="no-immediate-impact-on-shareholders">No immediate impact on shareholders</h3>
Explaining the compliance procedure, SOS said in a <a data-ct-non-breakable="null" href="https://www.globenewswire.com/news-release/2024/08/21/2933840/0/en/SOS-Ltd-Announces-Receipt-of-NYSE-Non-compliance-Letter-Regarding-ADS-Trading-Price.html" rel="" target="_self" text="null">statement</a>:&nbsp;
<blockquote>
 “The company can regain compliance at any time during the six-month cure period if, on the last trading day of any calendar month during the cure period, the company has a closing share price of at least $1 and an average closing share price of at least $1 over the 30 trading-day period ending on the last trading day of that month.”
</blockquote>
The noncompliance notice has no immediate impact on the listing of the company’s ADSs, which will continue to be listed and traded on the NYSE during the six-month cure period as long as other listing requirements of the NYSE are complied with.&nbsp;
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-open-interest-spikes-united-states-federal-reserve-dovish-tone-interest-rates" rel="null" target="null" text="null">Bitcoin open interest jumps $1.3B following Fed's 'dovish' minutes</a>
<h2 id="br-drop-in-share-price"> Drop in share price</h2>
The NYSE will commence suspension and delisting procedures in case at the end of the six-month cure period, both a $1 closing share price on the last trading day of the cure period and a $1 average closing share price over the 30 trading-day period ending on the last trading day of the cure period, could not be met.
<figure>
 <img alt="NYSE calls out crypto provider SOS for noncompliance" name="" src="https://s3.cointelegraph.com/uploads/2024-08/SOS3">
 <figcaption style="text-align: center;">
 SOS Limited stock six-month price chart. Source: Google Finance
 </figcaption>
</figure>
The company’s share price <a data-ct-non-breakable="null" href="https://www.nasdaq.com/market-activity/stocks/sos" rel="null" target="null" text="null">fell</a> 4.13% to $0.7 in pre-market trading on Nasdaq. As shown in the chart above, SOS stock prices touched $1 on May 22 and have been trading below the $1 mark since.&nbsp;
In March, the NYSE had <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/nyse-threatens-bakkt-delisting-stock-price-compliance" rel="null" target="null" text="null">threatened to delist</a> crypto custody and trading platform Bakkt if it did not get its average closing share price back above $1. Bakkt said the NYSE notified it that it was not in compliance with the stock exchange’s listing rules as over the past 30-day trading period, its share price closed below $1 on average.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/algorithm-choice-can-fix-social-media-but-only-on-decentralized-platforms/" rel="null" target="null" text="null">A ‘marketplace of algorithms’ could fix social media… so why hasn’t it?</a>

NYSE calls out crypto provider SOS for noncompliance

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Cointelegraph

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