Ailing life reinsurer receives notice related to non-compliance; risks delisting
Scottish Re Group has announced that on 2 January 2008 it was notified by the NYSE Regulation that the company had fallen below one of the quantitative criteria of the New York Stock Exchange’s continued listing standards.
The reinsurer was required to maintain a consecutive 30 trading-day average closing stock price of over $1.00 per ordinary share.
Under NYSE rules, at the end of the six month period following receipt of the original notification, the company must have brought its ordinary shares price and average share price for a consecutive 30 trading-day period back above $1.00, or be subject to suspension and delisting procedures.
On December 31, 2007, the Company’s thirty trading-day average closing stock price was $0.95 per ordinary share and its absolute closing price was $0.73 per ordinary share.
The company has notified the NYSE that it intends to submit plans to address the price deficiency within the required ten business day period following the receipt of the notification.
In the interim, the NYSE will add the indicator “.BC” to the ticker symbol for the company’s ordinary and perpetual preferred shares to signify that the company remains “below criteria” required by the NYSE for continued listings.