J.C. Penney plans to pursue a reverse stock split of its common stock in an effort to meet the New York Stock Exchange’s listing criteria.
The proposed stock split is subject to stockholder approval.
The announcement comes following the department store chain receiving notice from the NYSE that it was no longer in compliance with NYSE listing criteria. That criteria requires listed companies to maintain an average closing share price of at least $1 over a consecutive 30-trading-day period.
The retailer received notification of non-compliance from NYSE on Tuesday, August 6.
In accordance with NYSE rules, J.C. Penney has a period of six months from receipt of the notice to regain compliance with the NYSE’s minimum share price requirement, or until the company’s next annual meeting of stockholders if stockholder approval is required to cure the share price non-compliance, as would be the case to effectuate a reverse stock split.
The company’s common stock will continue to be listed and traded on the NYSE during this period, subject to the company’s compliance with other NYSE continued listing requirements.