Santa Ana-based Grubb & Ellis Co. said on Thursday it has received notice from the regulators of the New York Stock Exchange that the company’s stock could be delisted from the exchange unless its share price improves.
The good news is that a delisting won’t happen any time soon. Also on Thursday, the NYSE said it was suspending share price and market capitalization rules for its listed companies until the end of June.
Companies trading on NYSE are expected to maintain a consecutive 30-day average closing stock price of more than $1 per common share.
Grubb’s shares had an average price of about 95 cents for 30 days through Feb.12.
The company currently trades at about 60 cents a share with a market value of about $40 million. Grubb’s shares are down about 90% in the past year.
Under old NYSE rules, Grubb has six months to bring its share price and average price back above $1.
However on Thursday the NYSE announced a suspension to those rules, because the market sell-off of recent months has caused so many of its listed companies to fall below the $1 listing rule.
More than 50 companies whose shares had fallen below $1 would immediately benefit from the rule change, according to the NYSE.
The last local real estate company to be delisted from the NYSE was Irvine-based Impac Mortgage Holdings Inc.
The mortgage investor was moved to the low-profile Pink Sheets exchange in November, nearly a year after getting its initial warning letter from the NYSE.
