Nine Energy Service Receives Notice of Non-Compliance from NYSE

On October 21, 2024, Nine Energy Service, Inc. (the “Company”) received written notification from the New York Stock Exchange (NYSE) regarding its non-compliance with certain listing standards. The NYSE conveyed that the Company did not meet the continued listing compliance criteria set under Section 802.01B of the NYSE Listed Company Manual. This was primarily due to the average global market capitalization falling below $50,000,000 over a consecutive 30 trading-day period that ended on October 18, 2024, along with the Company’s stockholders’ equity dipping below the same threshold.

To rectify this situation, Nine Energy Service has a set timeframe for action. The Company has ten business days from the receipt of the Notice to confirm receipt and express its intent to address the deficiencies. Subsequently, within 45 days of the Notice, Nine Energy Service must present a plan to the NYSE outlining steps to regain compliance with the continued listing standards within 18 months. This plan will undergo scrutiny by the Listings Operations Committee of the NYSE, and failure to incorporate satisfactory measures could lead to suspension and delisting procedures by the exchange.

During the 18-month cure period, if accepted, Nine Energy Service’s common stock will remain listed on the NYSE, contingent upon continuous compliance with other listing standards. The Company would also face quarterly reviews regarding plan compliance. Failure to meet stipulated milestones or regain compliance by the end of the cure period may result in further delisting actions by the NYSE, especially if trading prices fall below certain thresholds.

Potential ramifications of delisting could negatively impact the Company, leading to reduced liquidity, market value, and investor interest. This could subsequently impede equity financing opportunities and hinder the ability to offer employee incentives.

Although the Notice does not trigger immediate delisting, it does require the addition of a “.BC” indicator to Nine Energy Service’s trading symbol “NINE” to signify non-compliance with NYSE standards. However, this indicator would be removed upon satisfying the listing requirements.

The Company released this information in an 8-K filing along with a press release on October 25, 2024. As per the requirements, the full details of this event will be documented in a Form 8-K to be submitted to the Securities and Exchange Commission (SEC) shortly.

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This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Nine Energy Service’s 8K filing here.

Nine Energy Service Company Profile

Nine Energy Service, Inc operates as an onshore completion services provider that targets unconventional oil and gas resource development in North American basins and internationally. It offers cementing services, including blending high-grade cement and water with various solid and liquid additives to create a cement slurry that is pumped between the casing and the wellbore of the well.