this New York Stock Exchange (New York Stock Exchange) announced on Wednesday that American FinancialCompanies trading under the ticker symbol “FOA.WS” will be delisted from the exchange. However, Class A common stock trading under the ticker symbol “FOA” will continue to trade.
“Trading in the warrants will be suspended immediately,” the NYSE said. “The Company’s Class A common stock (ticker symbol FOA) will continue to trade on the NYSE.”
“Pursuant to Section 802.01D of the Public Company Manual, NYSE regulators have determined that these warrants are no longer suitable for listing based on ‘abnormally low sale price’ levels,” the NYSE announced. “The company has the right to request A committee of the exchange’s board of directors reviews the decision.
“The New York Stock Exchange will apply Securities and Exchange Commission (SEC) to delist the Warrants upon completion of all applicable proceedings, including any appeal by the Company of the decision of the NYSE Regulators.
When contacted, an NYSE official declined to comment beyond the scope of the announcement.
Warrants and common stock work differently. According to information posted on the topic, warrants act as a “coupon” that allows the holder to “buy or sell a certain number of company shares at a predetermined price within a specified time frame without any obligation.” Nasdaq.
A business executive at FOA explained house lineReverse Mortgage Daily (RMD) said it does not expect this to have a material impact on the company’s operations or hinder the progress of other measures taken by FOA to support the stock price of its Class A common stock.
The executive said the warrants, which originated when the company was first preparing to go public through a special purpose acquisition company, were not a focus of the company as it was primarily focused on previously announced efforts to raise the price of the shares.
When asked whether the move by the New York Stock Exchange might lead to the delisting of common shares, the executive said that he was not currently worried about a significant impact on Class A shares.
The executive said the reality of the move was described as a “fact” and that the company would continue to work to increase its share price and offer products to senior borrowers.
In mid-June, an FOA filing with the SEC revealed that the company was preparing for a 10-for-1 reverse stock split, a move aimed at boosting the company’s stock price.
The FOA first received communication from the New York Stock Exchange in December 2023 that it did not meet the criteria for continued listing, and issued a second notification in February 2024. shares had a price of at least $1″ during the trading day, but the price reached that threshold only eight times in 2024.
After announcing the reverse stock split, FOA said it would restructure its unsecured debt into new secured debt that will mature beyond its original 2025 maturity date. The company and noteholders agreed to “exchange all outstanding 2025 unsecured notes” into two new tranches of secured notes.
The first is senior secured first lien notes due 2026 in an aggregate principal amount of up to $200 million (with the option to extend to 2027 if the Company chooses to do so), while the second in an aggregate principal amount of up to $150 million is due in 2029 The principal amount of exchangeable senior first lien notes due in 2017.
But the company has experienced other challenges recently, including a round of layoffs and the corresponding voluntary departure of its chief retail sales officer. It was not specified how many employees or which specific departments were affected.
Home Equity Conversion Mortgage (HECM) Endorsement Data Reverse Market Insights (RMI)’s FOA is the country’s leading reverse mortgage industry lender, with 7,566 endorsements in the 12 months ending June 2024.
Data comes from new perspective consultant It also shows that FOA is the leading issuer of HECM-backed securities (HMBS), accounting for 31.9% of the overall market in the first six months of this year.
